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| Gazprom's headquarters are pictured next to a 'No Entry'
traffic sign in Moscow January 4, 2006.
(Xinhua/Reuters) | MOSCOW, Jan. 4
(Xinhuanet) -- Russia and Ukraine struck a five-year deal on gas deliveries on
Wednesday, three days after Russia cut off the gas supply to Ukraine at the
height of a bitter pricing dispute.
Russia's move caused an uproar in Europe as gas
supplies fed by a key pipeline through Ukraine dipped severely during what has
been one of the coldest weeks of the winter.
Speaking at a press conference, Chairman of Gazprom
Alexei Miller said the Russian gas giant and Ukraine's oil and gas company
Naftogaz Ukrainy had signed a five-year contract on supplies.
Under a complex price scheme, Gazprom will sell gas
for 230 U.S. dollars per 1,000 cubic meters to the Rosukrenergo trading company,
which will mix the Russian gas with gas from Central Asian countries
Turkmenistan, Kazakhstan and Uzbekistan and sell the blend to Ukraine for 95
dollars per 1,000 cubic meters.
Ukraine had been buying gas from Russia at 50 dollars
per 1,000cubic meters over the past year.
The two sides also agreed on a new price for transit
of gas through Ukraine to Europe of 1.60 dollars for every 1,000 cubic meters
transported 100 km, up by nearly 50 percent from the previous price of 1.09
dollars.
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| Chief Executive of Russian gas monopoly
Gazprom Alexei Miller (R) and his counterpart from Ukraine's Naftogaz,
Oleksiy Ivchenko, speak during a news conference in Moscow January 4,
2006. (Xinhua/Reuters) | Gazprom provides about
half the gas consumed in the European Union (EU) and 80 percent of that amount
is sent through pipelines crossing Ukraine.
"The agreements will provide additional security
guarantees to gas exports to Europe and serve as a sound foundation for further
cooperation between Russia and Ukraine in the gas sector based on market
principles," Miller said.
The two countries had been locked in a months-long
dispute over gas prices, with Kiev strongly resisting Gazprom's demands that
Ukraine pay 230 U.S. dollars per 1,000 cubic meters. Russia cut off gas supply
to Ukraine on Sunday blaming the absence of a new deal.
European countries from Slovenia to Germany felt the
pinch of Russia's move, reporting shortfalls of gas supplies in freezing
weather.
Gas supplies in many affected countries returned to
normal levels after Gazprom pumped extra gas into pipelines running through
Ukraine. Russia accused Ukraine of stealing gas intended for other European
countries, a charge Kiev denied.
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| Austrian Economy Minister Martin
Bartenstein (L), whose country holds the EU rotating presidency, and EU
Energy Commissioner Andris Piebalgs attend a press conference in Brussels,
capital of Belgium, Jan. 4, 2006. (Xinhua
photo) | The head of Naftogaz Ukrainy, Olexiy
Ivchenko, said at the press conference his company is "satisfied with the
outcome of our negotiations," which will fully meet Ukraine's gas needs and
ensure the transit of Russian gas to Europe.
The 25-member EU convened an emergency session on
Wednesday to discuss Europe's energy security. Enditem |
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