Russia, Ukraine reach breakthrough deal ending gas war

(part of ongoing backblog posting) :
channelnewsasia.com :

Russia and Ukraine reached a breakthrough agreement that ends a bitter dispute over natural gas pricing and guarantees supplies to Kiev as well as to the lucrative European market. The accord settles a dispute that saw deliveries to Ukraine cut off, a move which had the knock-on effect of reducing supplies to the key European market which relies on Russia for a quarter of its gas needs.

After talks in Moscow, officials from Russian energy giant Gazprom and its Ukrainian counterpart Naftogaz said they had agreed on a five-year deal under which Kiev will buy gas at a rate of 95 dollars (79 euros) per 1,000 cubic metres (about 2.75 dollars per 1,000 cubic feet). Ukraine will have the right to buy gas from the joint venture for its own needs for 95 dollars - nearly double last year's tariff of 50 dollars. The two sides also agreed to raise by 47% the amount Ukraine is paid for the transit of Russian gas to Europe.

Gazprom controls a third of all global natural gas reserves, and the vast majority of deliveries to Europe - where Germany is the biggest importer and France, Poland and Italy also reliant on it - pass through Ukraine.

Post a Comment:

Comments are closed for this entry.

« Simmons expects oil... | Main | Environmental Techno... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004