Russia says Ukraine signs new gas deal

by Dave Keating | January 12, 2009 at 05:17 am

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Media sources are reporting that Russia and Ukraine have signed a deal that will enable gas to reume Russian gas flowing through Ukraine. Russia had shut off its gas flow into Ukraine after it accused the country of stealing gas by siphoning it off. That move plunged millions of people into a deep freeze last week, as people in the Balkans (mostly in Bulgaria) had no heat during a sever European cold snap.

Russia's gas export company Gazprom says Ukraine has signed a fresh copy of a gas transit monitoring agreement, without any added conditions.

Monday's signing should allow the resumption of gas supplies to much of Europe, shut down because of a contractual dispute between the two countries.

An agreement to resolve the issue was brokered with EU help on Saturday, but Russia pulled out, saying Ukrainian officials had unilaterally added a handwritten declaration to the document after it had been signed.

The declaration has not been made public. But Russia and Western news reports say Ukraine insists it did not steal gas meant for European customers and that it had fully paid an outstanding gas bill to Russia -- contradicting Russia's position.