The president of Turkmenistan, Saparmyrat Niyazov is reported to have given one of Russia's biggest oil companies, LUKoil, permission to operate in the republic.

The Interfax news agency reported the LUKoil president, Vagit Alekperov, as saying his firm was being allowed to consider becoming involved in Turkmenistan's potentially lucrative oil and gas industries.

Mr Alekperov said the company had asked the Turkmen government several years ago for permission to participate in Turkmen energy projects, but that conditions for joint-ventures didn't present themselves.