Moscow- Gas prices in Europe could hit 500 dollars per 1,000 cubic metres by the end of the year, the head of the Russian gas monopoly Gazprom predicted Thursday.

Alexei Miller was speaking on the fringe of a visit by Russian President Dmitry Medvedev to Azerbaijan.

At the end of last year the Kremlin-controlled Gazprom sold gas to European energy concerns for 250 dollars per 1,000 cubic metres.

Because the gas price is coupled to the price of oil, it could soar to 1,000 dollars per 1,000 cubic metres if crude climbs to 250 dollars a barrel, he said. Some grades of crude currently trading at over 140 dollars a barrel.

Miller said his company was interested in purchasing gas from Azerbaijan and other countries at market prices because Russian production was expected to stagnate next year.

Azerbaijan is considered the prime supplier for the Nabucco gas pipeline planned by the European Union to loosen its dependence on Russian deliveries of natural gas.

Analysts doubt Azerbaijan has enough production reserves to meet all the demands it is confronted with.

Following his trip to Azerbaijan, Medvedev plans to visit two other energy-rich former Soviet republics in Central Asia - Kazakhstan and Turkmenistan. (dpa)