MOSCOW, April 9 (RIA Novosti) - Russia will resume full electricity supplies to Azerbaijan starting May 1, the head of the Russian electricity monopoly Unified Energy System's subsidiary said Monday.
Yevgeny Dod, the head of the Inter RAO UES, which also manages energy assets in Russia and abroad, said the company suspended supplies of electric energy to Azerbaijan from early April as the sides had failed to agree on export and import terms.
"New price terms on electricity supplies to Azerbaijan will come into force from May 1 and will not infringe on the interests of both countries," Dod said.
In the first quarter of 2007 Russia had been supplying Azerbaijan with 35 million kilowatts of electricity monthly at $0.03636 per one kilowatt, while Azerbaijan has been exporting to Russia 50 million of kilowatts monthly at $0.018 per one kilowatt.
In early March, when the countries were considering import and export terms for the second quarter, Azerbaijan's energy company Azerenergy proposed that Inter RAO UES lower the export costs for Azerbaijan to $0.03 per one kilowatt, but refused to reduce the price for electricity imports for Russia.
Dod said as the negotiations progressed Russia proposed that Azerbaijan preserve current prices in the second quarter and work out a flexible pricing scheme for the third quarter taking into account various parameters but Azerbaijan refused the proposal.
