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. Last Updated: 07/27/2016

Turkmenistan Resumes Gas Supplies to Russia

ASHGABAT, Turkmenistan - Turkmenistan has begun supplying natural gas to Russia for the first time this year under a $400 million contract signed last month, a government spokesman said Tuesday.

Turkmenistan suspended shipments Dec. 31 after officials were unable to agree on a price. Then the Russian gas company Itera agreed in February to buy 10 billion cubic meters (350 billion cubic feet) of gas from Turkmenistan at a price of $40 per 1,000 cubic meters (35,000 cubic feet), above the $36-38 Russia paid last year.

Half the payment is in cash, half in barter. Supplies resumed this week.

Russia, a major gas producer, has bolstered its own gas exports to Europe with Turkmenistan's deliveries, as Russia's own gas production has declined after a decade of low investment. Russia effectively controls Turkmenistan's export routes.

Turkmenistan is hoping to increase exports gas this year, but its plans for a trans-Caspian pipeline remain stalled by bureaucratic inertia and low foreign interest.