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UPDATE 2-Russia's Medvedev in Turkmenistan to talk gas

Fri Jul 4, 2008 6:50pm IST
 
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By Oleg Shchedrov

ASHGABAT, July 4 (Reuters) - Russian President Dmitry Medvedev made little headway in his talks with Turkmenistan's leader on Friday after a day of diplomacy aimed at heading off a Western challenge to Moscow's control over Central Asian energy.

Central Asia's biggest gas producer, isolated for decades under its previous ruler, is now at the centre of energy diplomacy as Europe and Russia vie for control over pipeline routes to deliver its natural gas to global markets.

Russia, whose gas giant Gazprom controls Turkmen exports via its pipeline network, is worried the ex-Soviet state might be spinning out of its sphere of interest by forging closer ties with Europe which sees it as an alternative source of energy.

Speaking after talks, Medvedev and Turkmen President Kurbanguly Berdymukhamedov traded diplomatic bows and limited their remarks to prepared statements on strategic cooperation.

"We paid particular attention to cooperation in the energy sector," Medvedev said. Berdymukhamedov added: "We are committed to our traditional bonds of friendship and our path towards strengthening strategic partnership."

In an effort to persuade Turkmenistan to stand by old alliances, Russia has agreed to raise the knockout price it used to pay for Turkmen gas to international market levels from 2009 but Friday's talks failed to yield any news on the price.

Similarly, there was no word on how much natural gas Turkmenistan was prepared to ship through Russia -- although a senior Russian energy official said on the sidelines Moscow was determined to grab a larger share of Turkmen shipments.  Continued...

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