Ukraine and Russia reach gas deal
Bbc news online
Russian and Ukrainian officials have reached an agreement in their dispute over the price of gas. Under the deal, Ukraine will buy a mixture of Russian and Central Asian gas for $95 per 1,000 cubic metres.Russia switched off the gas supply to Ukraine on 1 January after Kiev refused to agree to a price rise taking the cost of Russian gas from $50 to $230. The row led to a disruption of imports across Europe, but correspondents say the threat to supplies is now over. "We have reached a final agreement. It is successful for Gazprom and we are satisfied," the head of Russian energy company Gazprom told reporters in Moscow. "This agreement will ensure stable supplies to Europe." The news came as European Union officials held emergency talks on how to ensure the security of gas supplies. Russia supplies about a quarter of Western Europe's needs, but this proportion is due to rise dramatically in future. Delegates from Ukrainian state energy company Naftogaz held midnight talks with Gazprom executives to try to resolve the dispute. Under the compromise, Ukraine will buy gas from the Russian-Swiss trading company, Rosukrenergo. Gazprom will sell gas to Rosukrenergo company for $230 for 1,000 cubic metres from 1 January, but the company will also supply Ukraine with much cheaper gas from Turkmenistan. The overall price Ukraine will pay be $95 per thousand cubic metres. It will also get paid 47% more for transporting Russian gas to Europe. Previously, Ukraine bought gas from Turkmenistan at a price of $50 per 1,000 cubic metres. Analysts say the deal is a face-saving compromise for the two sides. "It's designed so that both sides can say they're paying - and being paid - the price they wanted," Stephen O'Sullivan from Moscow investment bank UFG told the BBC News website. The Ukrainian foreign ministry said the authoritaties were fully satisfied with the deal and it was a clear victory for the country. Russia's decision to cut gas exports to Ukraine had caused dismay across Europe and spurred international efforts to mediate. Gazprom had accused Kiev of stealing gas intended for Europe. Kiev denied any wrongdoing and said it was being punished for its attempts to become more independent from Moscow and develop stronger ties with the West.
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