Moscow / Gazprom - the saliviki are on the march - energy prices on the rise in Europe.

Fathidin Mukhsiddinov of the Tajik state-owned gas company says that Uzbekistan has almost doubled the price of gas it sells to Tajikistan to US$100 usd per 1,000 cubic metres from Jan 1 2007. A contract for 700 Mn cubic metres is said to have been concluded.

In May Uzbekistan reduced its exports to Tajikistan, (one of the poorest in central Asia), because bills of US$4.5 MN had not been paid which caused industrial and commercial chaos until payment were made.

In Moscow at Gazprom's HQ, Prime Minister Sergei Sidorsky 's representative First Deputy Prime Minister Vladimir Semashko of Byelorussia signed a midnight deal to pay Gazprom GAZP.MM: Quote,$100 per 1,000 cubic metres of gas. More than double last years US$46 but less than the US$105 demanded.

For the next four years, Belarus would pay a portion of the cost in shares of Beltransgaz(Белтрансгаз). Which ends several years of negotiation over ownership of the company., now valued at $5 billion by ABN Amro but which Gazprom says is really US$3.5Bn.

Semashko, however, said Belarus would pay US$100 in cash in 2007 (half the US$200 demanded) and that Gazprom would pay for half of Beltransgaz and it's 6000 km's of pipelines in cash. He said the price would increase by US$11 annually after 2007, reaching US$144 in 2011.

In Minsk there had been threats to cut power to pump stations on the Yamal-Europe pipeline, which carries all Russian gas transiting Belarus to Western Europe.

Germany -- for whom Russia is a main gas supplier and the EU have used diplomatic pressure on Moscow and Minsk to reach a deal quickly and avoid any disruption to supplies to germany and Europe.

It appears that agreement has been reached but it has only moved the hand on the spigot to Moscow from Minsk... Moscow can now look to having used the gas supply weapon on deals directly with Armenia, Moldova, Georgia, Ukraine and now Byelorussia and Karimov has moved in concert over Tajikistan.

Which helps to maintain high world prices for gas, and factors in a security factor in all future negotiations.

We wait to see what happens when Gazprom offers to buy out Centrica (up 1% today @ 358p).. or Mr V Alekperov does through LUKoil.