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Russia, Ukraine Settle Gas Flap

Agreement reached; export flow to Europe not in danger

By Nick McMaster,  Newser Staff

Posted Mar 5, 2008 2:24 PM CST

(Newser) – Ukraine and Russia announced today that their natural-gas companies had settled the dispute that had caused Russia to cut gas supply to Ukraine by 50%—and spurred worries that the flow of gas to Western Europe would be disrupted, the AP reports. "The restrictions on deliveries for Ukrainian consumers have been lifted," reads a joint statement from Gazprom and Naftogaz.

Both parties hailed "an agreement on the resolution of the crisis situation," and noted that the transport of Russian gas across Europe would continue uninterrupted. Gazprom exports 20% of its gas to Western Europe through Ukraine, whose officials had said they might divert export-bound gas for internal use if Gazprom sustained supply cuts; relations between the neighbors remain strained, however.

Ukraine's state gas monopoly Naftogaz spokesman Valentyn Zemlyansky talks to media in Kiev, Ukraine, Thursday, March 4, 2008.  Ukraine's natural gas company threatened to begin diverting gas supplies headed for Western Europe, after Moscow warned it would halve gas deliveries to Ukraine in a long-running debt dispute.  (AP Photo/Sergei Chuzavkov)
Ukraine's state gas monopoly Naftogaz spokesman Valentyn Zemlyansky talks to media in Kiev, Ukraine, Thursday, March 4, 2008. Ukraine's natural gas company threatened to begin diverting gas supplies...   (Associated Press)
A gas pressure gauge of a main gas pipeline from Russia in the village of Boyarka near the capital Kiev, Ukraine on Tuesday, Feb. 12, 2008. Russia is threatening further gas cuts to Ukraine unless the two neighbors reach an agreement on debt payment and future deliveries. A spokesman for...
A gas pressure gauge of a main gas pipeline from Russia in the village of Boyarka near the capital Kiev, Ukraine on Tuesday, Feb. 12, 2008. Russia is threatening further gas cuts to Ukraine unless the...   (Associated Press)
Ukrainian Prime Minister Yulia Tymoshenko speaks during a news conference in Kiev, Ukraine, Monday, Feb. 11, 2008. Tymoshenko said Monday that Russia has promised not to shut off natural gas shipments, despite the Russian gas monopoly's threat that supplies could be halted Tuesday morning unless a debt dispute is resolved....
Ukrainian Prime Minister Yulia Tymoshenko speaks during a news conference in Kiev, Ukraine, Monday, Feb. 11, 2008. Tymoshenko said Monday that Russia has promised not to shut off natural gas shipments,...   (Associated Press)
The city of Moscow flag, left, and the Russian flag, right,  flutter in the wind outside Russian natural gas monopoly Gazprom  headquarters in Moscow in this March 30, 2006 file photo. Russia's state-controlled natural gas giant OAO Gazprom on Monday pushed back its possible gas cutoff to Ukraine to 6...
The city of Moscow flag, left, and the Russian flag, right, flutter in the wind outside Russian natural gas monopoly Gazprom headquarters in Moscow in this March 30, 2006 file photo. Russia's state-controlled...   (Associated Press)
A Ukrainian worker operates valves in a gas storage and transit point in Boyarka, just outside Kiev. Russian gas monopoly Gazprom reduced gas supplies to Ukraine today for the second time this week; the sides later came to a deal that restored flow to the pipeline.
A Ukrainian worker operates valves in a gas storage and transit point in Boyarka, just outside Kiev. Russian gas monopoly Gazprom reduced gas supplies to Ukraine today for the second time this week; the...   (Associated Press)
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