5 May 2024
Ukraine and Russia agree compromise removing obstacle for European supply disruption
Publication date: 01 September 2009
Gas Strategies Group
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ISSN: 0964-8496
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The gas supply agreement struck between Gazprom and Ukraine in January which ended the unprecedented cutoff of Russian exports to Europe was supposed to include measures that would move the Russian company and Naftogaz Ukrainy, its Ukrainian counterpart away from the uncertainty of annual fixed-price agreements toward a more stable market-based relationship. From the moment it was signed, however, consumers across Europe have been subjected to a monthly showdown between the two sides as the cash-strapped Ukrainian company struggled to meet the payment deadlines. But just as the two companies seemed to be lurching towards the possibility of a repeat of January's supply crisis, tensions between the two countries have easied after Russian prime minister made a number of timely concessions allowing Ukraine to only pay for the gas it imports in visual_editor009 and visual_editor010.