World News

Russia, Ukraine settle gas row

MOSCOW (AP) - Russian and Ukrainian natural gas companies agreed Jan. 4 on a plan to resume gas shipments to Ukraine that allowed both sides to claim victory after a commercial and political dispute that had raised fears of gas shortages in Europe.

The complex pricing plan Russia and Ukraine agreed to drew in a third company: a Russian-Swiss trading business - partly owned by a subsidiary of the Russian natural gas monopoly Gazprom - that will be the sole gas provider to Ukraine.

"The talks ended successfully for Gazprom and Gazprom is completely satisfied," Chief Executive Alexei Miller, said as he and Naftogaz head Oleksiy Ivchenko announced the five-year contract.

"We reached an agreement - on mutually beneficial, mutually acceptable terms - that will make it possible to supply Ukraine with the full volume of gas it needs and provide for the transport of Russian gas to Europe," said Ivchenko.

OAO Gazprom will sell natural gas to the RosUkrEnergo trading company for $230 (¥26,724) per 1,000 cu. meters as of Jan. 1 - the very price that it had first aimed to charge Ukraine.

Ukraine will then buy gas from the company for $95 (¥11,038) — nearly twice what it had previously been paying Gazprom, but still far lower than the price it had refused to pay Russia.

Shukan ST: Jan. 13, 2006

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