Ukraine and Russia Reach Deal on Natural Gas Supplies
The agreement, under European Union auspices, ends a standoff over payments for gas Ukraine had already consumed, and terms for future deliveries.
Russian and Ukrainian officials reached an agreement on Thursday night to resume Russian deliveries of natural gas to prevent shortages over the winter.
The deal caps months of laborious talks under the aegis of European Union authorities on how much, and how soon, Ukraine needed to pay Russia for gas it has already consumed, and on the terms for future deliveries.
There is “no reason for people in Europe to stay cold this winter,” José Manuel Barroso, the president of the European Commission, said at a news conference. Ukraine and Russia should “act as reliable partners,” he said.
On Thursday night, the ministers signed a deal guaranteeing Russian gas deliveries to Ukraine until March 2015 against a backdrop of the Russian and Ukrainian flags.
E.U. officials said those tranches would be based on a preliminary price of $268.50 per 1,000 cubic meters of gas.
Günther H. Oettinger, the European Union energy commissioner who has already brokered several rounds of talks, said the European Union and the International Monetary Fund would continue to assist Ukraine financially with its budget, its gas debts, and future gas payments.
E.U. officials said they expected Ukraine to pay about $1.5 billion for deliveries of around 4 billion cubic meters of Russian gas by the end of this year.
The Ukranian economy is still hobbling eight months after the ouster of President Viktor F. Yanukovych in the face of bloody street protests over his decision to align more closely with Russia.
The current round of talks began in early May after Gazprom sharply raised the price of gas to Ukraine in March. The price rose after Russia annexed Crimea and imposed an export tariff. In response, Ukraine ceased all payments.
Source: NYT-Ukraine and Russia Reach Deal on Natural Gas Supplies
