Russia and Ukraine aim to sign an agreement today to restart gas flows after finally agreeing a price for 2009 to potentially end a dispute that has severed supplies to Europe for nearly two weeks.
The ex-Soviet neighbours, whose pricing dispute left parts of southeast Europe without gas in the middle of winter, agreed an outline deal yesterday they say will quickly restore supplies both to Ukraine and across its territory to Europe.
Russian gas export monopoly Gazprom and Ukrainian state energy firm Naftogaz were working on a detailed agreement ahead of a signing ceremony scheduled for Monday.
"Gas transit, the Ukrainian side assured us, will be restored very soon," Russian Prime Minister Vladimir Putin said after weekend talks to end the dispute with his Ukrainian counterpart, Yulia Tymoshenko.
Mr Putin said Moscow had agreed to give Ukraine a 20 per cent discount to the price paid by European consumers, on condition Kiev holds 2009 tariffs for Russian gas transit across Ukraine at last year's level: $1.7 per 1,000 cubic metres over 100km.
Prices and transit tariffs next year would be "in line with European levels", without any discount, he added. However, it was not clear which European market prices would be applied.
Ms Tymoshenko left Kiev for Moscow with the intention of signing the deal, the Ukrainian government's press service said.
"Gas supplies to Europe will be resumed immediately after the signing," a Gazprom spokeswoman said. It would take 36 hours for the first Russian gas to cross Ukraine and enter Europe, Naftogaz officials said.
The failure of Moscow and Kiev to agree a price for Russian gas has enraged the European Union and brought into question the credibility of Russia and Ukraine as gas suppliers to Europe.
Russia cut supplies to Ukraine on January 1st because Kiev would not pay higher prices for its gas. Six days later, export flows to eastern Europe through Ukraine ceased amid Russian accusations that Kiev was "stealing" gas intended for export.
Reuters