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Russia, Turkmenistan may expand gas cooperation - Putin

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Russia and Turkmenistan may expand cooperation in the gas sphere, the Russian president said Monday.
NOVO-OGARYOVO, April 23 (RIA Novosti) - Russia and Turkmenistan may expand cooperation in the gas sphere, the Russian president said Monday.

Vladimir Putin said during his first meeting with Turkmen President Gurbanguly Berdymukhammedov that Russia "had launched a new leg of the gas pipeline system along the Caspian Sea and was currently pumping more than 5 million cubic meters of gas through it daily."

He said the two countries could expand activities in this sphere.

Turkmenistan possesses the world's fifth-largest reserves of natural gas and substantial oil resources.

On September 5, 2006, after Turkmenistan threatened to cut off supplies, Russia agreed to raise the price it pays for Turkmen natural gas from $65 to $100 per 1,000 cubic meters. Two-thirds of Turkmen gas goes through Russian energy giant Gazprom.

A Kremlin source said ahead of Berdymukhammedov's visit: "LUKoil, Zarubezhneft, Itera, Stroytransgaz, Soyuzneftegaz have plans to implement promising projects in Turkmenistan."

A number of Russia's large companies, such as Power Machines, Vyborg Ship Building Plant, Zvezda-Energetika, tractor plants in Cheboksary and Chelyabinsk, Volgaburmash, Kamaz and AFK Sistema are active in the Turkmen market.

The two countries' trade in 2006 amounted to $307.5 million, against $300.7 million in 2005. Russian exports accounted for $228.6 million and imports stood at $78.9 million, as compared to $223.5 million and $77.2 million, respectively. In the first two months of 2007 bilateral trade reached $45.7 million.

At a Thursday meeting with co-owners of AFK Sistema in Ashgabat, Berdymukhammedov invited the Russian leading consumer services firm, which owns a number of oil producing and refining assets in Bashkortostan, to develop oil and gas deposits at offshore sites on the Caspian Sea.

Russia is the second foreign destination after Saudi Arabia and the first CIS country on the new Turkmen leader's itinerary. Berdymukhammedov assumed power February 11, 2007 in the first contested election in Turkmen history, following the 21-year rule of Saparmurat Niyazov, the country's first president.

Since the inauguration of the new Turkmen leader several Russian delegations have visited Turkmenistan.

An agreement was reached to diversify bilateral relations between Russia and Turkmenistan during Russian Primer Mikhail Fradkov's visit to the country.

In early April, Russian Foreign Minister Sergei Lavrov held negotiations with the Turkmen leader and his counterpart in Ashgabat, during which Berdymukhammedov confirmed his adherence to energy cooperation and partnership diversification with Russia.

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