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Russia, Ukraine Reach Deal On Gas Supplies

4 January 2006 -- Russia and Ukraine have agreed on a deal to settle a pricing dispute that saw Russia cut off gas supplies to Ukraine.

The announcement was made on 4 January after talks in Moscow between the heads of Russia's state-controlled natural gas monopoly Gazprom and Ukraine's state energy company Naftohaz.

Under the five-year deal, Gazprom will sell gas at a price of $230 per 1,000 cubic meters to a joint Russian-Ukrainian trading company. That firm will then combine the Russian gas with gas from Central Asia, piped through Russia, and sell it to Ukraine at a price of $95 per 1,000 cubic meters, up from the current $50.

The rate for the transit of Russian gas through Ukraine has been raised from $1.09 to $1.6.

(RFE/RL 04.i.06)

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