THE European Union and Azerbaijan yesterday signed a deal in which the Caspian country pledged to supply Europe with "substantial volumes of gas," an agreement the EU said was an important step to reduce the bloc's dependence on deliveries from Russia.

In the agreement, Azerbaijan promised the EU to provide sufficient gas to enable the creation of the so-called Southern corridor - a route from the energy-rich Caspian basin to Europe that bypasses Russia. The infrastructure will be provided together by Europe and Azerbaijan, the EU said in a statement.

Moscow's disputes with Ukraine and Belarus have in the past cut off supplies to central and west Europe, making European policy makers keen to develop alternative routes to get their gas. Currently, the EU gets about 40 percent of its natural gas from Russia.