Ukraine, Russia solve gas price dispute before winter

0 Comments | AFP, October, 2006

KIEV (AFP) — Ukraine and Russia reached agreement on a compromise gas price, opening the way to reduced tensions between the two countries and an easing of European concerns about the reliability of Russian energy supplies. The Russian-Ukrainian companies RosUkrEnergo and UkrGaz-Energo signed a deal on deliveries of Russian natural gas in 2007 at a price of 130 dollars (103 euros) per 1,000 cubic metres, according to a joint statement.

"We have reached agreement," Russian ambassador Viktor Chernomyrdin earlier told reporters in Kiev during a visit to the Ukrainian capital by Russian Prime Minister Mikhail Fradkov. The price of 130 dollars per 1,000 cubic metres of Russian gas marks an increase on the current 95 dollars that Ukraine pays, but is less than a demand for 230...