Gas Price Issue Rekindled.

Gas Price Issue Rekindled. Turkmen President Saparmurat Niyazov stated on Friday that Turkmenistan will raise gas export prices for all consumers to USD 60 per 1,000 cm. Since the beginning of 2005, Ukraine, Russia and Iran have been buying Turkmen gas at USD 44 per 1,000 cm. Ukraine?s Fuel and Energy Minister Ivan Plachkov said that Turkmenistan does not have legal grounds to set the price at USD 60, since Ukraine and Turkmenistan already agreed at USD 44 per 1,000 cm for 2006. Meanwhile, the National Electricity Regulating Commission (NERC) stated its intention to start a step-by-step increase of gas tariffs for households in 2006. Currently, Ukrainian households pay USD 36.6 per 1,000 cm of natural gas and are cross-subsidized by industrial consumers and Naftogaz Ukrainy. Concorde Capital: The ability of Turkmenistan to increase its export gas prices will depend on the success of its negotiations with Russia. Iran is only a minor gas importer for Turkmenistan, while Russia controls the Central Asia ? Center pipeline system and thus determines how much Turkmen gas can be exported to Ukraine and further to Europe.