In Another Sign Of Better Relations Russia And Ukraine Sign Massive Gas Transit Deal

A gas compressor station near the village of Volovets, western Ukraine © Reuters / Gleb Garanich

Financial Post/Reuters: Russia, Ukraine outline terms for five-year gas transit deal to end row

MOSCOW/KIEV — Russia and Ukraine announced terms of a new gas transit deal on Saturday, under which Moscow will supply Europe for at least another five years via its former Soviet neighbor and which will a $2.9 billion payment to Kiev to end a legal row.

The deal is a major breakthrough for the both countries which have seeking to resolve their disputes over Ukraine’s eastern Donbass region and the Crimea peninsula, which Russia annexed in 2014.

Under the new agreement, Russia’s Gazprom, which supplies over a third of Europe’s gas needs, would used an agent to book the transit of 225 billion cubic meters (bcm) of the fuel via Ukraine over five years.

Of the total 225 bcm, 65 bcm would be shipped in 2020, falling to 40 bcm in 2021 and in each of the subsequent years, Gazprom said. The Russian gas company would also pay Ukraine the $2.9 billion, part of the settlement, before Dec. 29.

In exchange, Ukraine is expected to sign a legal settlement and withdraw all outstanding claims also before Dec. 29, aiming to resolve the issue before the existing supply deal expires.

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WNU Editor: Putin has given Ukrainian President Zelinskiy a huge gift. Stable energy supplies and prices for the next 5 years with an option to extend it to 10 years. This also tells em that there must be a lot of backdoor negotiating going on.

More News On Russia And Ukraine Signing A Massive Gas Transit Deal

Russia, Ukraine reach agreement on gas transit to Europe -- AP
Russia & Ukraine sign 'protocol of agreement' for gas transit to Europe - Gazprom -- RT
Everyone is a winner after EU-Russia-Ukraine gas talks -- Euractiv
Ukraine says gas deal with Russia has option for 10-year extension -- Reuters