Another gas conflict and supply disruptions freeze Europe at the peak of winter

The collapse in the negotiations on a new gas contract between Gazprom and Naftogaz in December 2008 prompted disruptions in gas supplies by Russia via Ukraine to its European consumers, thus putting the continent on the brink of fatal freezing in January 2009. However, thanks to multilateral efforts, including EU’s participation, Ukraine finally signed a long-term contract based on market principle with Russia that clearly spells out all parties’ responsibilities and penalties for breaching them in the future, thus putting an end to the perennial gas conflicts and their negative consequences for Europe.