Russia, Ukraine Reach Last-Minute Deal, Avert Gas Cut

Feb. 12 (Bloomberg) — Ukraine averted a cut in supplies of natural gas from Russia’s OAO Gazprom after the two countries’ presidents reached an agreement before a deadline passed.

Ukraine will start paying the debt for 2007 gas deliveries on Feb. 14, Ukrainian President Viktor Yushchenko said at a Kremlin press conference broadcast by Russian state television today.


“Gazprom is satisfied with the proposals made by our Ukrainian partners,” Russian President Vladimir Putin said as officials including Gazprom Chief Executive Officer Alexei Miller looked on. “Today or tomorrow, we hope all these agreements will be put on paper.”

Gazprom, which supplies Ukraine with 71 percent of its gas, threatened to cut a quarter of deliveries at 6 p.m. Moscow time in the absence of an arrangement on repaying the debt. Russia’s gas-export monopoly has said Ukraine owes it $1.5 billion for deliveries since November.

Bloomberg