RUSSIA'S GAS MONOPOLY GAZPROM SAID ON THURSDAY IT HAD FAILED TO CLINCH A NEW GAS IMPORT DEAL WITH TURKMENISTAN FOR LATE 2006 AND 2007, RAISING THE PROSPECT OF NEW CUTS IN GAS SUPPLIES TO EUROPE, ACCORDING TO REUTERS. IMPORTS OF TURKMEN GAS ARE VITAL FOR GAZPROM AS ITS OWN OUTPUT STAGNATES AND IT NEEDS MORE TO COVER GROWING DEMAND AT HOME AND IN EUROPE. IT SHIPS MOST TURKMEN VOLUMES TO UKRAINE AND ANY DISRUPTION COULD POTENTIALLY LEAD TO LOWER SUPPLIES TO EUROPE VIA UKRAINE'S TRANSIT PIPELINES. GAZPROM SAID TALKS HAVE BEEN SUSPENDED AFTER ASHGABAT ASKED GAZPROM TO PAY $100 PER 1,000 CUBIC METRES, UP FROM THE CURRENT $65. THE RUSSIAN COMPANY SAID THAT TURKMENISTAN NEVERTHELESS CONFIRMED IT WOULD RESPECT THE EXISTING DEAL AND SELL GAZPROM 30 BILLION CUBIC METRES AT OLD PRICES IN THE MEANTIME.
