Russia said it would offer lower oil export tariffs to the Caspian Sea group -- a big Azeri-led consortium including major international firms -- if it exported all its oil output through Russia, not Georgia.


Sergei Ter-Sarkisyantz, vice president of state oil transport firm Transneft, told a news conference Monday that Russia would halve export tariffs for the consortium until 2003 if the group agreed to send both early and later output through Novorossiisk on the Black Sea.


LUKoil, which is part of the consortium, has so far said it wants at least the early-output oil from the $8 billion project to go through Novorossiisk. Georgia wants the oil to be exported through its Black Sea port of Batumi.


Both options pose security risks.


The Novorossiisk pipeline runs through war-torn Chechnya, while Georgia has been rattled by civil war and separatist violence.


"We have promised and will fulfil our promise that there will be no 'bad weather,'" Ter-Sarkisyants said, referring to worries that oil exports through Chechnya might be risky.


"We guarantee the oil will flow without interruption ... [but] if Azerbaijan agrees to shipping only the early oil through Russia, then Russian tariffs may not be very good." He said


Russia is also prepared to export Azeri oil not linked to the consortium's output through Novorossiisk if the group agrees to Russia's option.


Russia has also offered to help reconstruct Azeri pipelines.


Transneft officials said informal proposals from Iran and Turkey for additional, separate transport routes were not being considered.


Turkish Prime Minister Tansu Ciller said in July that Turkey would buy the project's early output if it were exported through Georgia. Turkey has opposed the use of Novorossiisk because it would mean more tankers sailing through the Bosphoros.


The Caspian Sea consortium includes BP British Petroleum Co Plc, Statoil, Amoco Corp., Pennzoil Corp., Unocal Corp., McDermott International, Exxon Corp., Ramco Energy, Saudi Arabia's Delta Nimir, LUKoil and Turkish Petroleum Corp.


The early oil, about 5 million tons a year, is expected to start flowing in the fourth quarter of next year.


The Azeri International Operating Company, which groups consortium participants, meets in London this week to discuss the options.


Azeri SOCAR oil firm president Natik Aliyev was quoted by Interfax last month as saying a decision on export routes would be taken Oct. 9.


But Transneft officials said a decision would be taken 45 to 50 days after the London meeting.