Russian gas monopoly Gazprom said last week it had agreed to buy gas from the former Soviet states of Uzbekistan, Kazakhstan and Turkmenistan at prices close to what it charges European customers, minus transport and other costs.

Gazprom charges Europe around US$378 per 1,000 cubic metres and prices may hit US$400, a Gazprom source told Reuters, implying a price spike for Ukraine, which pays US$179.50 per thousand cubic meter (tcm) for the Central Asian gas it is buying from Gazprom this year.

On Tuesday, KazMunaiGas said in a statement that its own price could increase by 60-70% from January 2009 to up to US$306 per tcm compared with US$180 now.

Kazakhstan exports about 8 billion cubic metres of gas a year, mainly from its huge Karachaganak gas deposit in the west of the country.

Karachaganak is co-led by Italy’s Eni and Britain’s BG Group , which each hold 32.5% stakes, while U.S. company Chevron Corp. owns 20% and Russia’s LUKOIL has a 15% interest.

Gazprom and the Karachaganak partners have agreed to process up to 16 billion cubic metres of sulphur-laden Karachaganak gas at Russia’s Orenburg plant for 15 years.

Amid stagnant output in Siberia, Gazprom imports up to 70 billion cubic metres a year from Uzbekistan, Turkmenistan and Kazakhstan to help cover demand in Russia, ex-Soviet states and Europe. The world’s largest gas producer produces 550 bcm a year and exports around 150 bcm to Europe.