Date :Friday, October 31st, 2014 | Time : 07:24 |ID: 15501 | Print

Russia and Ukraine finalize gas deal

SHAFAQNA (Shia International News Association)

Russia has agreed to resume gas supplies to Ukraine over the winter in a deal brokered by the European Union.

The deal will also ensure gas supplies to EU countries via Ukraine are secure.

The deal follows months of talks between EU officials and the Russian and Ukrainian energy ministers.

The terms include the EU acting as guarantor for Ukraine’s gas purchases from Russia and helping to meet outstanding debts.

The total package is worth $4.6bn (£2.87bn), with money coming from the International Monetary Fund as well as the EU. The total includes funds from existing accords with the EU and IMF.

Ukraine has relied on Russia for around 50% of its gas. Despite storage facilities Ukraine has a winter shortfall of around 3 billion to 4 billion cubic metres of gas, analysts say.

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