From next year, Gazprom will buy its gas from Central Asia at double today's rates, following the trend of high prices in Europe, CEO Alexei Miller said in a televised meeting with Prime Minister Vladimir Putin on Tuesday.
Miller also reiterated that he saw Gazprom's average gas prices to Europe rising to $500 per 1,000 cubic meters by the end of the year, a prediction he made in Azerbaijan last week.
Such price rises will most likely be passed on to Ukraine, the biggest buyer of Gazprom's gas from Central Asia, and could spur renewed price disputes with Kiev.
Growing domestic demand for gas has led to consumption increasing by over 25 billion cubic meters in the last three years, Miller said.
"That is a lot of gas, as much as Gazprom exports to a country like Italy each year," he said.
"The domestic market is becoming a very serious rival to the external market," Miller said, especially after the government decided to move toward reduced gas subsidies for Russian customers.
To meet increasing demand, Gazprom has revised its annual production target from 561 bcm to 563 bcm and will aim for 570 bcm by 2010, Miller said.
The Moscow Times