Countries hope to sign 15 year oil transit agreement...
Moscow and Baku are holding talks for the preparation of a long-term agreement on the transit of Azeri oil through Russian territory for a period of up to 15 years, according to Russian Federation Energy Minister Igor Yusufov.
He stressed that in the context of drafting this document Russia "is willing to accommodate the Azeri side in particular on the question of lowering oil pumping tariffs".
He also said that the level of transit of Azeri oil through the Russian Federation in 2003 had reached the maximum levels of 2.7m tonnes.
At the same time, Yusufov stressed that "although under the existing agreement Russia is ready to pump up to 5m tonnes of Azeri oil, the potential of the Russian pipeline system is such that pumping volumes could be raised to 15m tonnes of oil".
According to Yusufov, Russia has an interest in increased volumes of Azeri oil transit.
He said Moscow was also interested in increasing gas supplies to Azerbaijan since "this is possible both because of Russian production capacities, and the level of gas extraction in the country".
Yusufov recalled that Gazeksport and Itera were to deliver up to 5bn cubic metres of gas to Azerbaijan in 2004. "But, if additional requirements arise, we are ready to increase delivery volumes," the minister said.
