 |
|
|||
| Member Center: Sign In | Register |  |
|||
 |
 |
 |
    | 
| ||||||||||||||||||||||||||||||||||||||||||
Russia, Ukraine reach natural gas deal
Wednesday, January 4, 2006; Posted: 5:55 a.m. EST (10:55 GMT)
Save on All Your Calls with Vonage
When looking for local regional and long distance calling, use Vonage to make... www.vonage.com $160,000 loan as low as $633/month. Compare rates - refinance now. www.lowermybills.com Get Road Runner: $29.95/month, $40 cash back and free installation. www.roadrunneroffers.com
RELATEDQUICKVOTEYOUR E-MAIL ALERTS(CNN) -- Russian and Ukrainian energy officials reached a deal Wednesday morning, ending a dispute over the price of Russian natural gas that caused shortages in the Ukraine and throughout Western Europe. Energy officials from both countries made a joint statement just after 10 a.m. (2 a.m. ET) -- three days after Russia stopped shipment of natural gas to its western neighbor. The Ukrainian natural gas company agreed to a price of $230 per thousand cubic meters of gas, The Associated Press reported, citing the head of Russia's gas monopoly, Gazprom. Ukraine had been paying $50 per thousand cubic meters of gas when Russia demanded more from its Western-leaning neighbor. Some observers said political motivations, not commercial ones, appeared responsible for the move, and could signify that Putin wants to use his country's vast energy supplies to ensure Russia once again becomes a regional power. They noted that Ukrainian President Viktor Yushchenko is a Western-leaning politician who won election over a Russian-backed candidate a year ago. Ukrainian officials claim the price hike is an attempt by Russia to penalize the former Soviet republic for its Western-leaning foreign policy. Russia maintains the increase would bring prices in line with global gas costs. The Ukraine's new rate of $230 per thousand cubic meters of natural gas compares to $47 for Russian ally Belarus, and $110 for Latvia, Lithuania and Estonia, all members of the European Union. EU energy ministers had planned to meet Wednesday in emergency session in Brussels to discuss how to respond to this week's short-lived attempt by Russia to boost the price for natural gas to Ukraine. The dispute between Russia and Ukraine had underscored the vulnerability of Russia's customers in Europe, sparking debate in capitals across the continent about energy security and supplies. Though Russia rescinded its demand Sunday for a price hike from Ukraine and restored the flow, several countries were reassessing whether they wanted to continue to be beholden to Russia to meet their energy needs. "We must not get fully relaxed, since the original reason of conflict between Russia and Ukraine is not resolved yet," said Janos Koka, Hungary's minister of economy and transportation. He called for alternative energy sources to be explored and for the creation of a strategic storage supply. The security of the gas supply "needs to be on the forefront of our perspectives," he said. Gazprom halted deliveries to Ukraine on Sunday after Kiev refused to meet its demands for a fourfold price increase. (Read about the background to the dispute) The company -- which provides a quarter of Western Europe's natural gas needs, 80 percent of which flows through pipelines that cross Ukraine -- said it had planned to continue shipping full supplies to those customers. (Map of gas routes) But shortly after supplies to Ukraine were halted, other countries began reporting reduced pressure in their pipelines -- some by more than 30 percent. (European customers hit by gas cuts) Russia responded by accusing Ukraine of stealing gas that was intended for other European countries. Ukraine vigorously denied the charges but said it may have to tap some gas if temperatures fall below freezing. Ukrainian President Viktor Yushchenko called the supply cut "unacceptable" and his country's foreign ministry said the move amounted to economic "blackmail." Copyright 2006 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report. 
|
 | ||||||||||||||||||||||||||||||||||||||||||
 |
|
| © 2006 Cable News Network LP, LLLP. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines. Contact us. |
|
External sites open in new window; not endorsed by CNN.com
Pay service with live and archived video. 
