Resolution of gas dispute between Moscow and Kiev finally restores energy supplies to Europe
MOSCOW, Russia - With the removal of the last technicalities that had continued to block transit to Europe after the failure of the trilateral agreement to resolve the dispute between Moscow and Kiev over gas deliveries to Ukraine for its domestic consumption, Naftogaz finally resumed the transit of Gazprom’s gas to its European consumers, some of whom were on the verge of freezing in this year’s unprecedentedly winter temperatures.
Both Russian and Ukrainian officials have lauded the resumption of gas supplies as a diplomatic breakthrough in the difficult relations between the former Soviet states. “Russia and Ukraine have agreed for a gas delivery price for Ukraine of $450 with a 20% discount for 2009, conditional on its retaining the transit rate for 2008 for Gazprom’s shipments to its European clients,” Russian Prime Minister Vladimir Putin said at the end of the marathon negotiations that led to the signing of the gas agreement between the former Soviet states in mid-January. “Both sides have penned a 10-year contract, effective from Jan. 1, 2010 and run till 2019, under which the gas trade between the two countries will be conducted at prevailing prices for European countries bordering Ukraine without discounts.”
Calling the negotiations ‘very difficult,’ Ukrainian Premier Yulia Timoshenko, however, noted that the mutual understanding reached during the talks on gas issues have enabled Russia and Ukraine to sign all the contracts that are needed to restart gas supplies to both Ukraine and Europe. “These agreements will exclude the annual rows and eliminate subjective approaches on gas issues, thus enhancing normal relations between the two countries.”
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