Baku:  Russian President Dmitry Medvedev said today he wanted to regain Russian access to the vast energy reserves of the ex-Soviet Caspian region where Western energy firms have displaced Moscow's influence.

During the visit, the chief executive of Russian gas giant Gazprom predicted the price of oil would "very soon" rise to UDD 250 per barrel, bringing higher gas prices for European consumers in its wake.

After talks with Azerbaijani President Ilham Aliyev in Baku, Medvedev told journalists he saw "prospects" for energy cooperation between the two countries and noted "we have no problems in the area of transportation" thanks to the existing pipeline network.

Aliyev said the two leaders held "active" talks on energy and were examining "new projects that could be of mutual interest."

Gazprom CEO Alexei Miller said ex-Soviet Azerbaijan and Russia had agreed "on the start of negotiations on the conditions for Gazprom s purchase of Azerbaijani gas."

Analysts say Russia is vying for Azerbaijani gas with Western companies, which have gained a strong presence in the country since the 1991 Soviet collapse.

Relations between the two countries soured in 2007, when Gazprom demanded Azerbaijan pay twice as much for gas imported from Russia. Azerbaijan abruptly halted gas imports from Russia and replaced them with its own supplies.

Led by Britain's BP, Western energy companies have built a strategic corridor of pipelines to deliver Caspian Sea oil and gas through Azerbaijan, Georgia and Turkey to European markets, bypassing the Soviet-era network.

Miller said Gazprom was prepared to buy "a maximum volume" of Azerbaijani gas "on a market basis," though he refused to discuss specific prices.

Source : PTI