January 19, 2009
Deal struck: siberian gas will flow to Europe again
A new 10 year deal means Europeans can thaw frozen buildings after the transmission of natural gas through Ukraine begins again. While both Russia and Ukraine have been eager to blame one another fro the crisis, they’ve also done the right thing in making a deal. Shame on them for using gas as a political weapon, and shame on Europe for becoming so reliant upon them. Hopefully all will learn from this experience.
Officials at the signing ceremony in Moscow said gas would start flowing again soon across Ukraine to Europe, but the European Union said it would not consider the crisis over until its monitors register gas arriving at the bloc’s borders.
Under the deal, Ukraine will buy Russian gas at a 20 percent discount to European market prices in 2009, while Kiev agreed to retain preferential transit fees for Russia this year before both sides switch to a market-based price formula from 2010.
“Gazprom received an order to start deliveries through all routes indicated by our Ukrainian partners and in full volumes,” Prime Minister Vladimir Putin told a joint news conference with his Ukrainian counterpart, Yulia Tymoshenko. (Moscow Times)