Russia says gas OPEC talk shows "sick imagination"

MOSCOW, Feb 6 (Reuters) Russian Energy Minister Viktor Khristenko dismissed today reports that Russia could participate in an OPEC-style gas exporting group, calling them ''a product of a sick imagination.'' Claims that Russia could participate in a gas exporter's group, which intensified after recent visits of Russian officials to Iran and Algeria, deeply alarm the European Union, which takes about a quarter of its gas supplies from Russia.

''Constant expansion of our contacts with consumers as well as other producers is aimed at improving reliability, strengthening energy security and minimising risks,'' Khristenko said during a televised news conference.

''Fantasies about cartels and gas OPECs are products of a sick imagination,'' he added.

Russian officials have repeatedly denied the claims, but President Vladimir Putin added to the European Union's worries last week saying he saw the idea of gas OPEC interesting, although confirmed that Russia had no plans to set up the group.

The issue, which had emerged in the past, resurfaced last month after meeting of the head of Russia's Security Council Igor Ivanov with Iranian Supreme Leader Ayatollah Ali Khamenei in Tehran.

Khamenei was quoted by the Iranian television as saying after the meeting that Iran and Russia could establish the structure for an organisation of gas cooperation like OPEC.

Russia and Iran are the world's number one and number two holders of gas reserves respectively, followed by Algeria.

Last year Russian gas monopoly Gazprom agreed a cooperation deal with Algeria's oil company Sonatrach, raising fears in Europe that two of its top gas suppliers might fix prices.

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