Russia and Ukraine Hail Gas Deal
Russia and Ukraine ended their dispute over gas prices with a face-saving deal yesterday amid fears it might be only a temporary solution.
Russia and Ukraine ended their dispute over gas prices with a face-saving deal yesterday amid fears it might be only a temporary solution.
Both sides hailed the agreement, which calmed fears of gas shortages in other countries, but one international energy expert warned of problems ahead.
In a complex five-year deal, the two countries agreed the Russian energy group Gazprom will sell gas to a trading company, RosUkrEnergo, for $230 per 1,000 cubic metres, the price Gazprom had demanded from Kiev. Ukraine will then buy gas from the intermediary at $95. Gazprom said RosUkrEnergo, which it partly owns with Austria's Raiffeisenbank, can afford to sell on gas at the lower price because it purchases cheap supplies from central Asia.
Alexei Miller, chief executive of Gazprom, said the deal "complies with all our demands". The head of Ukraine's Naftogaz, Oleksiy Ivchenko, also lauded the "mutually beneficial" deal. In Kiev, president Viktor Yushchenko said it heralded a move to "a European-style transparent and clear price-setting formula".
Some Ukrainian politicians were circumspect about the involvement of RosUkrEnergo, which was briefly investigated for links to organised crime last year.
Both sides hailed the agreement, which calmed fears of gas shortages in other countries, but one international energy expert warned of problems ahead.
In a complex five-year deal, the two countries agreed the Russian energy group Gazprom will sell gas to a trading company, RosUkrEnergo, for $230 per 1,000 cubic metres, the price Gazprom had demanded from Kiev. Ukraine will then buy gas from the intermediary at $95. Gazprom said RosUkrEnergo, which it partly owns with Austria's Raiffeisenbank, can afford to sell on gas at the lower price because it purchases cheap supplies from central Asia.
Alexei Miller, chief executive of Gazprom, said the deal "complies with all our demands". The head of Ukraine's Naftogaz, Oleksiy Ivchenko, also lauded the "mutually beneficial" deal. In Kiev, president Viktor Yushchenko said it heralded a move to "a European-style transparent and clear price-setting formula".
Some Ukrainian politicians were circumspect about the involvement of RosUkrEnergo, which was briefly investigated for links to organised crime last year.
Use the feedback form below to submit your comments.
Use the form below to email this article to your friends.
- Russia Tells British Council to Shut Offices
- Sect Members Wait in Russian Cave for World to End
- Bus Bomb Kills Eight in Russian City of Tolyatti
- Hand of John the Baptist in Russia
- Medvedev Warns Against Nato Admission for Russian Neighbours
- Russian Head of British Council Group Arrested
- Russia Arrests Two Men in British Council Spying Row
- Anglo-Russian Relations
- Russia's Priests Told to Carry Guns to Foil Armed Icon-raiders
- Climate Change May Spark Conflict With Russia, Eu Told
- EU Concerned As Russia Cuts Gas to Ukraine
- Putin Urges Russians to Vote
- Q&A: the Russian Presidential Election
- Russia Shuts University That Displeased Putin
- EU Gas Supplies at Risk If Ukraine Does Not Settle Bill With Russia
- Monitors to Boycott Russian Election in Row Over Restrictions
- Catherine The Great - Empress of Russia
- Russia Chechnya Conflict
- Russian Babies Have Their Mouths Taped Shut by Yekaterinburg Hospital Staff
- Iran Stops Cooperating with IAEA, Still Negotiating with Russia