Russia's Gazprom, Ukraine, agree on gas terms

( dpa ) - Officials for the Russian energy conglomerate Gazprom on Thursday announced agreement with Ukraine on natural gas sales, lessening chances of a break of supplies to Europe.

Gazprom chairman Aleksei Miller and Oleh Dubina, director of Ukraine's state-owned energy company Naftohaz Ukrainy, signed an agreement in Moscow.

The deal set out terms of Russian natural gas sales to Ukraine planned for the remainder of 2008, and if enforced would go far towards ending long-standing conflict over energy between Kiev and the Kremlin.

Gazprom, using its own and gas bought from Central Asian producers, will sell Ukraine 49.8 billion cubic metres of gas, at a fixed price of 179.50 dollars, the Interfax news agency reported.

The fuel would be sold directly by Gazprom to Naftohaz Ukrainy, ending 17 years of Gazprom gas being transported to Ukraine via middleman companies, some of which have been accused of funnelling proceeds to organized crime syndicates.

The terms are a clear victory for government of Ukrainian Prime Minister Yulia Tymoshenko, who came to office on promises of making Russian gas sales to Ukraine transparent, while at the same time avoiding price hikes by Gazprom, and by upstream Central Asian producers.

Moscow however scored a major concession by obtaining Kiev's agreement to pay up outstanding debt owed to middleman companies, partially owned by Gazprom, for gas used in January and February 2008 - a reversal of Tymoshenko's long-held position that she would "not to pay a kopeck more" to the middleman companies.

The deal further obliges Kiev to pay the middleman companies for those two months' of supplies at a rate of 315 dollars per 1,000 cubic meters, making the total bill agreed to by Ukraine roughly 600 million dollars.

Naftohaz Ukrainy will repay part of the debt by transferring some of its gas reserves to Gazprom's ownership, according to the report.

Tymoshenko in February repeatedly rejected 315 price demanded by Gazprom as "extortion," and even ignored an instruction by Ukrainian President Viktor Yushchenko to settle the account immediately.

A potentially ground-breaking term of the agreement allows the Russian energy giant to sell, for the first time, gas directly to Ukrainian consumers with a maximum annual quota of 7.5 billion cubic metres, or some 10 per cent of Ukraine's domestic gas market.

The condition marks a dramatic reversal of years of Ukrainian government policy aimed at keeping Gazprom out of Ukraine's domestic markets at all costs, because of worries Ukrainian energy security is threatened by the Russian corporation.

Tymoshenko in late-evening television comments on Wednesday nonetheless pitched the agreement as a "victory for the Ukrainian people," pointing to a fixed low price and exclusion of middleman companies as proof she had achieved her aims in the negotiations.

Some 80 per cent of Gazprom's exports, and 30 per cent of the European Union's natural gas, travels to market via pipelines crossing Ukraine.

A late 2005 disagreements between Moscow and Kiev on gas sold to Ukraine have halted the flow, spiking prices as far away as France. Gazprom temporarily cut off supplies to Ukraine again last month, during the most recent round of price negotiations.

Subscribe to Trend in Google News! Subscribe
Iran reveals COVID-19 data for November 27
Iran reveals COVID-19 data for November 27
Iran reveals COVID-19 data for November 25
Iran reveals COVID-19 data for November 25
Iran reveals COVID-19 data for November 24
Iran reveals COVID-19 data for November 24
Loading Bars
Best moments of third day of the World Age Group Competitions in Trampoline Gymnastics and Tumbling in Baku (PHOTOS)
World age group competition in Baku - Russian gymnast wins first place in individual trampoline jumping
Russian gymnast wins gold in individual trampoline jumping in Baku
Turkmenistan boosts imports of electrical goods from Turkey
Smoking to be banned in taxis in Georgia
Iran’s Bahar Azadi gold coin price rebounds
11,358 people received COVID-19 vaccine in Kyrgyzstan over past day
Prepared hard for the 28th World Competition in Baku - athlete from Denmark
Finalists in synchronized trampoline jumping among men and women announced at 28th FIG World Age Group Competitions in Baku
Finalists in individual trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Azerbaijan expects mutual steps from Armenia towards achieving peace - FM
Azerbaijani, Turkish FMs meet at Economic Cooperation Council's meeting in Ashgabat
Phone conversation held between Presidents of Azerbaijan and Belarus
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,617 more COVID-19 cases, 1,979 recoveries
ECO Council of FMs supports Azerbaijan's proposal to establish Clean Energy Center (PHOTO)
Buy/sell operations at Iran Mercantile Exchange revealed
Finalists in double mini-trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Finalists in acrobatic jumping among men named at 28th FIG World Age Group Competitions in Baku
Azerbaijani gymnast Seljan Mahsudova reaches finals of World Age Group competition
Kazakhstani Astana- Motors to produce Hyundai cars in Uzbekistan
Iran reveals COVID-19 data for November 27
Finalists in acrobatic jumping among women announced at 28th FIG World Age Group Competitions in Baku
Novavax developing vaccine that targets new COVID-19 variant
Eni sells some stakes to Snam
28th FIG Trampoline Gymnastics World Age Group Competitions underway in Baku (PHOTOS)
Azerbaijan reveals financing of pensions, benefits for 9M2021
Turkish company to organize cotton-textile cluster in Uzbekistan
Finalists in double mini-trampoline among women announced at 28th FIG World Age Group Competitions in Baku
Georgia’s imports from Turkmenistan triple
Coach set goal to enter top three in individual trampoline jumping - Russian gymnast
Uzbek National Bank to issue its bonds on Russian Exchange
33,946 new Covid cases registered in Russia in 24 hours
Georgia to replace damaged buildings – Mayor of Tbilisi
Meeting in Sochi - new step towards sustainable peace in South Caucasus - Turkey's presidential administration
Turkey's cargo traffic via its Gulluk port for 9M2021 revealed
GUAM shares reviews of results of Georgia's presidency
Uzbekistan to sell shares of its two banks to Russian banks
EBRD to support green innovation in Uzbekistan
Turkmenistan's On Dogan to scale up production of vegetables, melons
Turkey shares data on cargo shipment via its ports from Greece for 9M2021
Azerbaijan limits import of poultry products from number of countries
Number of flights from Iran’s Shahid Beheshti International Airport soars
Turkey discloses volume of cargo shipment via its ports from Italy for 9M2021
Iran resumes activity of several enterprises in Sistan and Baluchestan Province
Azerbaijan’s Nakhchivan notes increase in agricultural production for 10M2021
Relations between Baku, Moscow experience highest dev’t stage in history of Azerbaijan's independence – experts
Sri Lanka bans travellers from 6 African nations due to Omicron COVID variant
We feel very comfortable in National Gymnastics Arena in Baku - Israeli athletes
Weekly review of key events in Azerbaijan's ICT sector
Weekly review of main events in Azerbaijan's transport sector
Uzbekistan reveals leading banks without state share in terms of volume of deposits
Number of people hospitalized after Listvyazhnaya mine explosion grows to 58
Weekly review of Azerbaijani precious metals market
Georgia reveals top exported goods to China
Performing at National Gymnastics Arena in Baku is unbelievably cool - Kazakh athlete
Iran’s NICICO records increase in sales
Weekly review of Azerbaijani currency market
Azerbaijan notes growth in total liabilities of banks in 10M2021
Several hydrological points to be installed on rivers in Azerbaijan’s liberated territories – ministry
Iran’s Saipa Company increases auto manufacturing
Georgia releases COVID-19 data for November 27
Uzbekistan names leading state-owned banks in terms of volume of deposits
Georgia, EU to enhance co-op in foreign policy, security
Iran to reconsider guaranteed price for wheat purchase
Iran sees increases in exports
Iran, Afghanistan to improve trade
Third day of 28th FIG Trampoline Gymnastics World Age Group Competition kicks off in Baku (PHOTO)
Turkey shares data on cargo shipment via its ports from Spain for 9M2021
Methane outburst is viewed as likely cause behind deadly blast at Listvyazhnaya coalmine
Turkey shares data on vehicles shipments between its Cesme, Greek Chios ports
Weekly review of Azerbaijan's oil & gas sector
Iran's PBO talks reduced inflation rate
Iranian startups to make their first initial public offering - Farabourse
Iran's solar power plants generate half of renewable energies - SATBA
Iran eyes developing national space industry
Azerbaijan once again achieves its goals at meeting in Russia’s Sochi - experts
Uzbekistan shares updated COVID-19 data
New World Order and India
Iranian currency rates for November 27
Azerbaijani oil prices decrease
Azerbaijan sees decrease in number of users per payment terminal in 10M2021
Iran, France to improve economic ties
Turkey reveals volume of vehicles shipments between its Yalova, Italian Bari ports
Georgia-China trade turnover up
Kazakhstan’s Ekibastuz GRES-2 power station opens tender to buy spares for engine
Pfizer/BioNTech, Moderna expect data on shot's protection against new COVID-19 variant soon
“Armenian clan” guides European institutions (PHOTO)
Iran, Turkmenistan, Kazakhstan sign tripartite MoU on railway cooperation
Turkey bans travel from 5 African countries over new COVID-19 variant
Uzbekistan, Kazakhstan sign an agreement worth about $612 million
Kazakhstan has great potential to use high environmental standards in practice - AIFC
South Africa says travel bans over new variant unjustified
US announces travel restrictions over new COVID-19 variant
At least 19 dead, 32 injured after bus crash in Mexico
US company Moderna begins work on vaccine against new SARS-CoV-2 variant ‘Omicron’
Dozens of COVID-19 cases on flight from South Africa, Dutch authorities say
Top Iran diplomat calls for lifting of sanctions, days before Vienna nuclear talks
U.S. President Biden calls for intellectual property protection waivers on COVID-19 vaccines
WTO postpones major meeting over COVID-19 concerns - sources
All news