Russ Oil-Gas

05–25–2006 Kommersant – Russian President Vladimir Putin met Kazakh President Nursultan Nazarbaev at his Sochi residence in Bocharov Ruchey yesterday. The two presidents came to an agreement that Russia will pay for Kazakh gas at market prices. Vladimir Putin said after the meeting that Russia and Kazakhstan finally agreed on prices for Kazakh gas which had been the thorniest issues at the talks. Putin also informed that CIS leaders signed the document appointing Nazarbaev president of the Commonwealth of Independent States, despite the vehement opposition of Moldova’s President Vladimir Voronin to Nazarbaev’s nomination.
Nursultan Nazarbaev elaborated on new railroads tariffs for Kazakh cargoes in Russia. He said Kazakhstan will enjoy bigger profits from the lower duties on its cargoes going through Russia, which will also increase the transportation of transit cargoes in Russia by three million metric tons. Sergey Prikhodko, the Russian president’s aide, admitted, however, that the rebate tariffs will hit the Russian budget hard but will ensure that Kazakh cargoes do not go to China.
The Saturday meeting was to set the actual price that Russia should pay for Kazakh gas. The two countries agreed on the average between lofty prices that Russia charges from European countries and low ones for the CIS, a source of Kommersant reported.
Nazarbaev was showered with such gifts yesterday as market gas prices, privileged railroads tariffs in Russia for Kazakh cargoes, the presidency at the CIS and an invitation to visit the G8 summit in St. Petersburg. Russia, however, hopes to receive something in return. “Our specialists have come to an agreement on the production, processing, refinement and supply of Kazakh gas,” Vladimir Putin said but did not mention the estimated amount of the resources.