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News // Russia

Ukraine Will Get Gas at a Cheaper Price

25 October 2006 , 09:34478
Ukraine and Russia are renegotiating its controversial gas deal with Russia, which would see it pay much more for imports from its neighbour.

The two have agreed, in principle, for Ukraine to pay about $130 per 1,000 cubic metres - up from $95 now.

The arrangement, yet to be officially agreed by the two countries' state gas firms, follows months of negotiations by senior government officials.

Russia turned off Ukraine's gas supply in January amid a bitter price dispute

The row sent shockwaves across Europe, as much of Russia's gas exports to EU countries are transported across Ukraine.

Ukrainian Prime Minister Viktor Yanukovych and his Russian counterpart Mikhail Fradkov said a deal had been reached in principle.

Analysts said the agreement looked, on paper, a good one for Ukraine which had feared having to pay even more for Russian imports.

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