Russia and Azerbaijan agreed last year on Russian supplying up to 2 billion cubic metres of gas per year to Azerbaijan, however the volumes have yet to start flowing.

   

Industry sources have said pricing issues have been behind the holdup of the deal.

   

"We are still interested in Russian gas purchases. We have presented our proposals to Gazprom," said Rovnag Abdullayev, the head of Azeri state energy firm SOCAR. He also said that the firm has been in talks with Iran over gas.