During a visit to Moscow, the president of Azerbaijan Ilham Aliev also confirmed his country's interest in selling gas directly to Gazprom.
The meeting between President Aliyev and his Russian counterpart Dmitry Medvedev was expected to improve the chances of a gas deal under which Azerbaijan would sell 16 billion cubic metres of gas annually to Gazprom from its Shakh Deniz gas field.
Baku, which currently exports gas to Georgia and Turkey, says it is looking to new markets – including Russia – and the Azeri president expressed enthusiasm for a deal with Moscow.
"There are no transit countries between us, and this means that quite an effective transport infrastructure is already in place. There is no need for additional investment in building a gas pipeline. All the conditions therefore look very advantageous," said Aliev at the joint press conference, quoted by the Kremlin website.
His Russian host also expressed optimism that a deal could be hammered out soon.
"I think that we have excellent prospects for reaching a full-fledged agreement that takes into account our countries' interests and the companies' commercial interests. This could open a new chapter in our energy cooperation," Medvedev stated.
The talks appeared to strike another blow to the EU-favoured Nabucco pipeline project, which aims to decrease the Union's dependence on Russian gas.
Anticipating wary EU reactions, the Russian press gloated that Brussels had better not complain. "The European Union would likely welcome the emergence of a new supplier from the East, albeit one dependent on Russian pipelines, especially since the completion of Nabucco remains in doubt," the Moscow Times wrote today.
US policy shift?
At the same time, analysts said the US had started shifting from the policies of previous administrations, which focused on promoting alternative energy corridors Europe, in order to improve its relations with Moscow.
Alexander Rar, director of Russia and CIS Programmes for the Foreign Policy Council of Germany, a think-tank, said "Americans offered to unite 'South Stream', Nabucco and other pipes into a general project under the code name 'Southern Corridor' in order not to create geopolitical contradiction at the moment when we need Russia to solve Iranian problem and other matters".
The EU also recently attempted to rebrand Nabucco under the wider 'Southern Corridor' expression (EurActiv 17/03/09). The term 'Southern gas corridor' also includes an offshore pipeline, ITGI, to be built between the Greek Ionian coast and Italy, and other projects in the south.
