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Russia and Ukraine 'agree gas deal'

Written By blogger on Thursday, October 30, 2014 | 3:56 PM

Russia has agreed to resume gas supplies to Ukraine over the winter in a deal brokered by the European Union, sources close to the talks say.

European Commission president Jose Manuel Barroso will outline the terms at a press conference late on Thursday.

The deal follows months of talks between EU officials and the Russian and Ukrainian energy ministers.

The terms are expected to include EU money to help Ukraine pay off its debts to Russia's gas giant Gazprom.

Gas supplies were halted over late payments when Russia scrapped subsidies given to Ukraine for importing gas, meaning the price paid by Ukraine rose sharply.

However, the backdrop to the row is Russia's conflict with Ukraine and Western sanctions on Moscow.

Although the impact of the gas ban has been relatively small, it was feared that the onset of winter made the need for a deal more urgent.

Ukraine has relied on Russia for around 50% of its gas. Despite storage facilities Ukraine has a winter shortfall of around 3 billion to 4 billion cubic metres of gas, analysts say.

Russia provides around a third of the European Union's gas, about half of which is pumped via Ukraine.


Russia and Ukraine 'agree gas deal'

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