Putin and Tymoshenko to talk into night to solve gas

The Prime Ministers of Russia and the Ukraine Vladimir Putin and Yulia Tymoshenko reached Sunday an agreement on the gas pricing dispute between their states, which is expected to lead to restoration of Russian gas supplies for Europe as early as Monday.

Putin and Tymoshenko agreed at a meeting in Moscow that the Ukraine would start buying Russian gas at market prices just like other European states but with a 20% discount in 2009, the Bulgarian news agency BGNES reported.

In exchange, the Ukrainian side has agreed to keep the current preferential transit fees for Russian gas until the end of 2009.

Under the old contract, the Ukraine was getting Russian natural gas at USD 179,5 per 1 000 cubic meters, whereas the rest of Europe pays USD 350.


The two Prime Ministers have asked the respective gas monopolies, Gazprom and Naftogaz, to prepare a draft for the framework agreement, which is expected to be signed Monday.

The Ukrainian PM Yulia Tymoshenko said in a joint press conference with Vladimir Putin after the end of the five-hour talks that the Russia gas supplies for Europe via the Ukraine might be resumed on Monday, as soon as the agreement was signed.

The only question mark left after Sunday's agreement between Putin and Tymoshenko is whether the Ukrainian President Viktov Yushchenko will confirm the deal with Moscow. In 2008 Yushchenko vetoed a similar framework agreement on the Russian gas supplies.