Russia-Ukraine Sign Gas Deal

 

Russia and Ukraine signed a new deal Monday to end a long, bitter dispute that has left many European countries running short of natural gas for weeks.

The two countries’ prime ministers reached an agreement early Sunday morning after five hours of what Ukrainian Prime Minister Yulia Tymoshenko called “difficult” negotiations.

Russian Prime Minister Vladimir Putin said the 10-year agreements would “provide long-term, stable and reliable gas deliveries.”

Both Putin and Tymoshenko said they hoped the gas crisis would never be repeated and pledged to do everything possible to make sure Europeans start getting gas as quickly as possible.

Tymoshenko and Putin talked for two hours on Monday before the heads of Russia’s Gazprom and Ukraine’s Naftogaz signed the deal several hours behind schedule.

Tymoshenko told the media after her talks with Putin on Sunday that gas exports to Europe will resume as soon as the agreement is signed.

But it could take 24 hours or more for Russian gas to reach Europe via Ukraine’s pipeline system due to the distance, experts say.

Ukraine and Russia locked horns at the end of last year over Ukraine’s past payments for Russian gas, and failed to agree on the terms for a new contract.

As a result, Russia turned off Ukraine’s gas, but promised the supply of gas to Europe through Ukraine would be unaffected.

Despite the guarantee, European supply was brought to a halt nearly two weeks ago, something each side blamed on the other.

The gas shutoff left millions in Europe suffering from shortages in heating and cooking gas during a colder than average winter. Eastern Europe, in particular, is experiencing historic low temperatures this year.

An earlier European Union effort to broker a deal between Russian and Ukrainian gas companies failed to solve the problem. An agreement was signed and the EU agreed to send observers to monitor gas flow, but gas supplies did not resume.

The EU has since called the problem a bilateral one that Russia and Ukraine needed to resolve. The bloc has repeatedly said the longer the dispute drags out, the more damage it does to both nation’s credibility and reliability as energy suppliers.

Tymoshenko and Putin Sunday agreed that Russia will give Ukraine a 20 percent discount on the price it charges Europe for gas. In exchange, Ukraine will not hike the fees it charges Russia to transport gas onward to European countries.MOSCOW, Russia (CNN) – Russia and Ukraine signed a new deal Monday to end a long, bitter dispute that has left many European countries running short of natural gas for weeks.

The two countries’ prime ministers reached an agreement early Sunday morning after five hours of what Ukrainian Prime Minister Yulia Tymoshenko called “difficult” negotiations.

Russian Prime Minister Vladimir Putin said the 10-year agreements would “provide long-term, stable and reliable gas deliveries.”

Both Putin and Tymoshenko said they hoped the gas crisis would never be repeated and pledged to do everything possible to make sure Europeans start getting gas as quickly as possible.

Tymoshenko and Putin talked for two hours on Monday before the heads of Russia’s Gazprom and Ukraine’s Naftogaz signed the deal several hours behind schedule.

Tymoshenko told the media after her talks with Putin on Sunday that gas exports to Europe will resume as soon as the agreement is signed.

But it could take 24 hours or more for Russian gas to reach Europe via Ukraine’s pipeline system due to the distance, experts say.

Ukraine and Russia locked horns at the end of last year over Ukraine’s past payments for Russian gas, and failed to agree on the terms for a new contract.

As a result, Russia turned off Ukraine’s gas, but promised the supply of gas to Europe through Ukraine would be unaffected.

Despite the guarantee, European supply was brought to a halt nearly two weeks ago, something each side blamed on the other.

The gas shutoff left millions in Europe suffering from shortages in heating and cooking gas during a colder than average winter. Eastern Europe, in particular, is experiencing historic low temperatures this year.

An earlier European Union effort to broker a deal between Russian and Ukrainian gas companies failed to solve the problem. An agreement was signed and the EU agreed to send observers to monitor gas flow, but gas supplies did not resume.

The EU has since called the problem a bilateral one that Russia and Ukraine needed to resolve. The bloc has repeatedly said the longer the dispute drags out, the more damage it does to both nation’s credibility and reliability as energy suppliers.

Tymoshenko and Putin Sunday agreed that Russia will give Ukraine a 20 percent discount on the price it charges Europe for gas. In exchange, Ukraine will not hike the fees it charges Russia to transport gas onward to European countries…

www.cnn.com