The paper reported that Ruhrgas representatives would sign the agreement for buying the stake, which will make the German firm Eesti Gaas's largest single shareholder, next week. Originally Russian Gazprom was to buy the stake, but late last year the company announced that due to the poor economic situation in Russia, it could not make any investments to the foreign countries.

Privatisation agency Director General Vaino Sarnet was quoted by newspaper as saying that Ruhrgas has expressed its wish in writing to buy the additional stake in Eesti Gaas.

Ruhrgas will buy the shares under the same conditions that were set for Gazprom, according to which the German gas company will pay 12,250 kroons for each 1,000-kroon nominal value share.

Ruhrgas currently owns 20.7per cent of Eesti Gaas, Gazprom 30.6 per cent, Finnish energy company Neste 10 per cent, the Estonian state 11.4 per cent. Some 27.3 per cent of the company belongs to smaller shareholders.

Eesti Gaas made a net loss of 25 million kroons in 1998 on turnover of 635 million kroons.