Gazprom Mulls Raising W Europe Gas Price 60% In 2008

Russian natural gas monopoly OAO Gazprom is considering raising gas prices for western European customers by up to 60% in 2008, citing Gazprom Deputy Chief Executive Alexander Medvedev.

The main reason for the rise is the contractually agreed link to oil prices with a delay of around six months, the report says.

However, Medvedev also blamed European Union efforts for energy market liberalization, saying the European Commission's ownership unbundling plans will "inevitably create a situation of rising prices."

"Liberalization doesn't work in infrastructure industries like power and gas in particular," Medvedev is quoted as saying.