Russia, ukraine end dispute over kiev's natural- gas debt
12 February 2008
Published in Wall Street Journal / AP
Russian and Ukrainian leaders on Tuesday agreed to settle a dispute over Ukraine's gas debt, avoiding a threatened cutoff in supplies that had rattled consumers in the European Union.
Separately, Russian gas monopoly OAO Gazprom and the Ukraine's Naftogaz Ukrainy will form a 50-50 joint venture to import gas to Ukraine for local sales, said Gazprom Chief Executive Alexei Miller. The deal ends years of complicated contracts, which involved a chain of intermediary companies. The latest contract expires at year-end and it isn't clear when the new scheme will come in force.
Russian and Ukrainian leaders on Tuesday agreed to settle a dispute over Ukraine's gas debt, avoiding a threatened cutoff in supplies that had rattled consumers in the European Union.
Separately, Russian gas monopoly OAO Gazprom and the Ukraine's Naftogaz Ukrainy will form a 50-50 joint venture to import gas to Ukraine for local sales, said Gazprom Chief Executive Alexei Miller. The deal ends years of complicated contracts, which involved a chain of intermediary companies. The latest contract expires at year-end and it isn't clear when the new scheme will come in force.
President Vladimir Putin and his Ukrainian
counterpart, Viktor Yushchenko, said they negotiated
a settlement of Ukraine's debt and agreed on terms
for gas supplies later this year.
"We have agreed that Ukraine will start paying off the debt starting Thursday," Mr. Yushchenko said at a news conference after the Kremlin talks, which lasted for four hours. Gazprom said Ukraine owes $1.5 billion for gas. Ukrainian Prime Minister Yulia Tymoshenko acknowledged Monday that Ukraine had a gas debt, but gave the lower figure of $1.07 billion.
Mr. Yushchenko said the two sides also agreed that Ukraine would pay the current price of $179 per 1,000 cubic meters through the year's end.
Mr. Putin said Gazprom was satisfied with the Ukrainian proposals on settling the gas debt.
Gazprom had threatened to cut off gas supplies to Ukraine on Tuesday if an agreement wasn't reached. The prospect worried EU nations, which experienced disruptions in gas supplies transiting Ukraine during a similar cutoff in January 2006.
Mr. Yushchenko said after the talks that the two countries agreed to set up a working group to discuss ways to streamline their gas trade.
"We have agreed that Ukraine will start paying off the debt starting Thursday," Mr. Yushchenko said at a news conference after the Kremlin talks, which lasted for four hours. Gazprom said Ukraine owes $1.5 billion for gas. Ukrainian Prime Minister Yulia Tymoshenko acknowledged Monday that Ukraine had a gas debt, but gave the lower figure of $1.07 billion.
Mr. Yushchenko said the two sides also agreed that Ukraine would pay the current price of $179 per 1,000 cubic meters through the year's end.
Mr. Putin said Gazprom was satisfied with the Ukrainian proposals on settling the gas debt.
Gazprom had threatened to cut off gas supplies to Ukraine on Tuesday if an agreement wasn't reached. The prospect worried EU nations, which experienced disruptions in gas supplies transiting Ukraine during a similar cutoff in January 2006.
Mr. Yushchenko said after the talks that the two countries agreed to set up a working group to discuss ways to streamline their gas trade.