Russia, Ukraine finalise Europe gas transit deal

Moscow and Kiev on Monday signed a five-year agreement on the transit of Russian gas to Europe via Ukraine, finalising months of difficult talks just ahead of a New Year deadline.

The current deal between the two ex-Soviet countries expires Tuesday and ties between them have been shredded since Moscow annexed Crimea in 2014 and supported a separatist insurgency in eastern Ukraine.

Presidents Vladimir Putin and Volodymyr Zelensky discussed the deal by phone and congratulated each other ahead of New Year’s celebrations, a sign that their relations could be on the mend.

The gas deal “creates a positive atmosphere for solving other bilateral problems,” the Kremlin said in a statement.

About 18 percent of the European Union’s annual natural gas consumption comes from Russia via Ukraine, which put pressure on EU officials to help broker the deal.

The agreement should prevent a repeat of so-called gas wars that previously disrupted supplies and in some years caused real energy problems in EU member states.

EU Commission vice president in charge of energy Maros Sevcovic called the deal “great news for Europe’s energy security” on Twitter, while German Chancellor Angela Merkel thanked Russia and Ukraine.