Moscow, Baku relations linked to energy

BAKU, Azerbaijan, July 30 (UPI) -- Russia sees its trade relationship with Azerbaijan as a key strategic foundation as both countries move toward a stronger energy partnership, officials say.

The State Oil Co. of Azerbaijan Republic and energy monopoly Gazprom signed a deal in June to secure 1.7 billion cubic feet per year from Azerbaijan starting in 2010.

Russian Minister of Economic Development and Trade Elvira Nabiullina said in an interview with the Trend news agency in Azerbaijan that emerging energy ties between the two countries would give new momentum to bilateral relations.

"It is very promising for the Russian investors to establish joint ventures in the field of petroleum engineering," she said.

Alexei Miller, the chief executive at Russian energy monopoly Gazprom, said the gas from the Azeri energy deal would come from the massive Shah Deniz gas field.

Shah Deniz in the Caspian Sea is one of the largest finds in recent decades, with roughly 15 trillion cubic feet of natural gas reserves.

Nabiullina said Russian companies were interested in increasing their stake in the second phase of Shah Deniz in a way that is beneficial for both countries.

"Azerbaijan needs supplies of oil and gas producer's equipment and tool, as well as rendering of services on drilling, overhaul of wells," she said. "But Russia is capable to provide these needs. We can indicate other mutually profitable spheres."