Russian Prime Minister Mikhail Fradkov said on Monday that Russia could help Azerbaijan transport its natural gas to third countries as Azerbaijan sought alternatives to transiting through Russia.

"Since gas extraction is growing from the Shah-Deniz reserves, Azerbaijan can cover its needs and later it will not need to buy from Gazprom any more," Fradkov said in Baku during a visit to Azerbaijan.

"But this does not exclude development of cooperation for third-country markets," Fradkov added.

Russia's state gas monopoly Gazprom plans to increase the price of gas sold to Azerbaijan from 110 dollars per 1,000 cubic meters to 230 dollars as part of a series of price hikes for the country.

In reaction, Azerbaijani President Ilham Aliyev said his country could be forced to reduce oil transport via Russia to supply its own power generation facilities.

Azerbaijan currently exports 4.1 million tons of oil each year through a pipeline that runs from Baku on the Caspian Sea to the Russian Black Sea port of Novorossiysk.