Reports: Russia, Uzbekistan to build gas pipeline

Russia controls westward export pipelines for gas from Turkmenistan, which has the largest reserves in the former Soviet Union after Russia and produced around 73 billion cubic meters last year. According to official figures, Russia currently buys around 70 percent of its gas, and earlier this year offered to pay for as much gas as it can sell at European prices.

Energy-hungry China has also sought a cut in Turkmenistan's gas wealth, agreeing to a deal to build a natural gas pipeline that is to come on line in 2009. Turkmenistan recently agreed to boost the agreed exports to 40 billion cubic meters annually.

Meanwhile, Russia's largest independent oil producer Lukoil says it plans to produce 12 billion cubic meters of gas per year at Uzbekistan's Kandym and Gissar fields.