Russian energy titan Gazprom's Marketing & Trading division has concluded its first deal for CO2 trading on the European market after entering into an agreement with a UK-based subsidiary of International Power. Meanwhile, over in eastern Europe, Gazprom has reportedly irked its neighbor Georgia by announcing gas supply price increases.

The CO2 deal, which concerns gas and CO2 trading for electric power, was concluded between Gazprom Marketing & Trading and Deeside Power, a UK-based trading unit of leading electric power supplier International Power.

CO2 trading is accomplished under the Kyoto Protocol, the main goal of which is to force all industrial countries to reduce emissions of greenhouse gases up to 5.2% below their 1990 baseline over the 2008 to 2012 period.

The agreement fits Gazprom’s strategy of expanding its presence in Europe’s electric power market.

In other news, Gazprom has reportedly revealed that it will more than double the price of gas supplies to Georgia from next year. According to press reports, Gazprom intends to charge its neighbor $230 per 1,000 cubic meters of gas, a rise of $120 compared to the current price. This move would not only prove a blow to Georgia, but also to its neighbor Armenia, which receives its gas via Georgia.