Russia and Ukraine end dispute over gas supply

RUSSIAN AND Ukraine declared an end to their energy war last night, but an impatient European Union demanded to know exactly when the two countries would resume gas supply to member states.

“Ukraine and Russia have solved all problems. All the conflicts have been resolved, all the contracts have been signed,” said Ukrainian prime minister Yulia Tymoshenko after meeting Russian counterpart Vladimir Putin in Moscow.

“In the coming hours we expect the Russian side to start supplying gas to European Union countries,” she added, after Kremlin-controlled energy firm Gazprom and Ukraine’s state gas company Naftogaz signed a long-awaited supply deal.

Mr Putin added: “Gazprom received an order to start deliveries through all routes indicated by our Ukrainian partners and in full volumes . . . I expect all supplies of Russian gas to Europe to be fully restored soon.”

Frustrated by the behaviour of Russia and Ukraine during a crisis that left hundreds of thousands of Balkan homes without gas heating and forced industry across eastern Europe to scale back or halt production, the EU demanded to know when Moscow’s gas would again reach the bloc.

“We now need an indication of the precise time that gas deliveries will be resumed. Our monitors will verify when the gas actually starts to flow,” the European Commission said. Energy experts expect Russian gas to arrive in Europe through Ukrainian pipelines about 36 hours after Gazprom reopens its gas taps.

Russia turned off gas for Ukrainian consumption on January 1st due to Kiev’s alleged fuel debts, and then cut exports to the EU via Ukraine after accusing it of stealing the gas from its pipelines.

The breakthrough came when Ukraine agreed to pay European market prices for Russian gas from next year, and Moscow pledged to pay Kiev the full international transit rate for pumping the fuel across its territory. The countries will pay a reduced rate for fuel and transit in 2009.

An aide to Ukrainian president Viktor Yushchenko – who is locked in a bitter power struggle with Ms Tymoshenko – immediately criticised the deal as too favourable to Russia.