MOSCOW, July 3 (Xinhua) -- Russian gas monopoly Gazprom and Azerbaijani gas companies have agreed to start talks on sales of Azerbaijani natural gas to Gazprom, the RIA Novosti news agencies reported Thursday.

    "Azerbaijan could become one of the countries selling natural gas to Gazprom," said Gazprom CEO Alexei Miller, who accompanied Russian President Dmitry Medvedev to Azerbaijan.

    Miller told reporters that the company is seeking to buy the largest possible volumes at market prices.

    Gazprom forecasts that Russian gas prices will reach 500 U.S. dollars per 1,000 cubic meters by the end of 2008. "If oil prices exceed in the future 250 dollars a barrel, then gas prices will grow to 1,000 dollars per 1,000 cubic meters," Miller said.

    Rovnag Abdullayev, president of the State Oil Company of Azerbaijan, said earlier that the South Caucasus Republic was studying Gazprom's offer to buy Azerbaijani gas at market prices along with proposals to supply natural gas for the Nabucco and Trans-Adriatic gas pipeline projects.

    Russia and Azerbaijan have signed five cooperation documents in Baku on Thursday after talks between Medvedev and his Azerbaijani counterpart Ilkham Aliyev.

    The two presidents signed a declaration on friendship and strategic partnership and agreements on cooperation in archive storage, security for transit cargoes, prevention of customs violations and privatization of state property.