Russia and Ukraine sign gas deal

Russia and Ukraine have signed a 10-year gas deal, which their leaders say will bring their long-running dispute to an end. Russia says its energy company Gazprom has been told to resume gas flows to Ukraine and Europe. Russia and Ukraine sign gas deal The EU had earlier given a guarded response, saying the crisis would only be over once gas supplies resumed. Millions of Europeans have been without heat because of the dispute, which began on 1 January. Ukrainian Prime Minister Yulia Tymoshenko said the transit of Russian gas to European consumers would begin as soon as the gas reached Ukraine. During a joint news briefing with Russian Prime Minister Vladimir Putin, Tymoshenko said there would be "no delays" in supplies from the Ukraine side. Officials say the restored gas shipments could take up to 36 hours to cross Ukraine and reach European customers, the Associated Press. Tymoshenko had flown back to Moscow on Monday for a meeting with Mr Putin after the two countries' gas companies, Gazprom and Ukraine's Naftogaz, succeed in hammering out the final details. Under the deal they outlined, Ukraine will start paying for Russian gas at "European" rates from 2010 while equally charging Russia "market" rates for transit. In the current year, Ukraine will also begin paying a higher rate but with a 20% discount in return for keeping the transit charge at its 2008 level. It is not yet clear how much these new rates will actually be, Reuters news agency notes. Ukrainian President Viktor Yushchenko's office had clashed with Tymoshenko on Ukraine's negotiating position just before the Moscow talks. The BBC in Moscow says Prime Ministers Tymoshenko and Putin seem to be back on good terms again, a change of tune from a few days ago. The reputations of Russia, as a gas supplier, and Ukraine, as gas transit country, have been damaged by the affair. On Sunday, before the deal was signed, Czech Industry Minister Martin Riman, whose country currently holds the EU presidency, welcomed the agreement, but urged caution. "Over the past few days we have seen several similarly hopeful moments. The only thing that counts for the EU is the resumption of gas supplies." EU states import a quarter of their gas from Russia and 80% of supplies come via Ukraine. Almost 20 countries in Europe have been affected by the dispute. Russia switched off gas supplies to Ukraine in a row over payment. Transit supplies dried up within a week as Russia accused Kiev of stealing gas meant for other countries. PM Vladimir Putin, right, his Ukrainian counterpart Yulia Tymoshenko, center, Gazprom chief Alexei Miller, and the head Ukrainian state energy firm Naftogaz (Beta)

Russia and Ukraine sign gas deal

The EU had earlier given a guarded response, saying the crisis would only be over once gas supplies resumed.

Millions of Europeans have been without heat because of the dispute, which began on 1 January.

Ukrainian Prime Minister Yulia Tymoshenko said the transit of Russian gas to European consumers would begin as soon as the gas reached Ukraine.

During a joint news briefing with Russian Prime Minister Vladimir Putin, Tymoshenko said there would be "no delays" in supplies from the Ukraine side.

Officials say the restored gas shipments could take up to 36 hours to cross Ukraine and reach European customers, the Associated Press.

Tymoshenko had flown back to Moscow on Monday for a meeting with Mr Putin after the two countries' gas companies, Gazprom and Ukraine's Naftogaz, succeed in hammering out the final details.

Under the deal they outlined, Ukraine will start paying for Russian gas at "European" rates from 2010 while equally charging Russia "market" rates for transit.

In the current year, Ukraine will also begin paying a higher rate but with a 20% discount in return for keeping the transit charge at its 2008 level.

It is not yet clear how much these new rates will actually be, Reuters news agency notes.

Ukrainian President Viktor Yushchenko's office had clashed with Tymoshenko on Ukraine's negotiating position just before the Moscow talks.

The BBC in Moscow says Prime Ministers Tymoshenko and Putin seem to be back on good terms again, a change of tune from a few days ago.

The reputations of Russia, as a gas supplier, and Ukraine, as gas transit country, have been damaged by the affair.

On Sunday, before the deal was signed, Czech Industry Minister Martin Riman, whose country currently holds the EU presidency, welcomed the agreement, but urged caution.

"Over the past few days we have seen several similarly hopeful moments. The only thing that counts for the EU is the resumption of gas supplies."

EU states import a quarter of their gas from Russia and 80% of supplies come via Ukraine. Almost 20 countries in Europe have been affected by the dispute.

Russia switched off gas supplies to Ukraine in a row over payment. Transit supplies dried up within a week as Russia accused Kiev of stealing gas meant for other countries.