DAVOS Gazprom denies EU 'cartel' charge

DAVOS Gazprom denies EU 'cartel' charge - UPDATE

	Published : Thu, 25 Jan 2007 20:19 By : Agencies Print this Story

(adds further Medvedev comments on Eni deal, Gazprom image)

DAVOS, Switzerland (AFX) - Gazprom deputy chairman Alexander Medvedev has hit back at EU claims the group was attempting to create a gas cartel with Algeria to control supplies to Europe.

Medvedev, speaking on the sidelines of the World Economic Forum here, said recent talks between Gazprom and Algerian state-owned energy group Sonatrach were merely aimed at increasing mutual cooperation.

'It's an absolutely normal business discussion, which could potentially bring cooperation in different areas of the energy sector,' he said.

'It is based not on the assumption of a cartel-type arrangement, but based on pure commercial motivation.

'It is the same as energy companies like Exxon and Shell discussing their joint ventures,' he said.

Asked if the intention was to control prices, he replied: 'No, it is not possible to control prices in the gas industry due to the structure of the gas market.'

On Wednesday, European Energy Commissioner Andris Piebalgs had told a conference in Berlin that if Russia and Algeria agreed to cooperate in the production and distribution of gas to Europe 'they could create a kind of cartel'.

'The context of these meetings between Russia and Algeria makes us nervous,' the International Herald Tribune reported him as saying in its Thursday edition.

'We, Europe, are their biggest customers. We want to have a fair price. This is not only about commercial interests. It is about transparency,' Piebalgs added.

In further comments, Medvedev said his company is in the final stages of discussions on its planned agreement with Eni SpA.

The companies have announced an outline agreement in which Gazprom will take a stake in Eni's production and downstream gas activities, while Eni will have a stake in Russian production assets.

Medvedev said the company rejects the negative presentation of the company and plans to boost its efforts on public and investor relations 'not just before the annual shareholder meeting'.

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DAVOS Gazprom denies EU 'cartel' charge - UPDATE