Russia and Ukraine Finally Signed Gas Supplies Contract

Eventually, Russia and Ukraine reached agreement on all issues of gas transit and supplies. Russian PM said the reporters that from now on there would be no intermediaries in Russian-Ukrainian gas relations.

On signing the agreement Gazprom was ordered to restart full natural gas deliveries to Europe via Ukraine.

Ukraine has got 20% off the gas price of $450 that was proposed after Kiev had thwart plans to resume gas transit for several times. THe discount will be valid through the year of 2009.

At the same time the price Russia pays for using Ukrainian territory for gas transit is going to stay the same through the whole 2009.

The Ukrainian PM Yulia Tymoshenko said the agreements would alleviate all problems in the gas sphere between the two countries.

"Ukraine will remain a dependable transit partner," she said, adding that Ukraine could save $5 billion in 2009 due to the 20% gas discount.

Around 20 countries in Europe have been affected by the dispute, and the EU has called the cut in supplies "completely unacceptable."

Author: Ksenia Kochneva