EU Closely Watching Russian-Algerian Gas Deal

Russian President Vladimir Putin (left) during a visit to Algeria in March 2006 (epa)

August 8, 2006 -- The European Commission's spokesman, Stefaan de Rynck, said today it is "very closely" following a deal between Russia's gas monopoly Gazprom and Algeria's Sonatrach.

Italian Industry Minister Pierluigi Bersani has warned in a letter to EU Energy Commissioner Andris Piebalgs that the deal would increase dependency on a limited number of gas suppliers and could push up gas prices in Europe.

(Reuters)