Gazprom to Buy Central Asian Gas at European Prices Starting 2009?

In a press release yesterday, Gazprom said that its counterparts in Turkmenistan, Kazakhstan, and Uzbekistan are going to switch to European prices for natural gas starting in 2009. According to Kommersant, representatives of Turkmengaz (Turkmenistan), which is the largest supplier of Central Asian gas to Gazprom (~40 bcm/y), see the price increasing from the average of USD 140/tcm in 2008 to USD 250-270/tcm. A concrete price formula has not been developed yet. The announcement came on the eve of talks between Gazprom and Naftogaz of Ukraine, which are to recommence today.