Ukrainian PM meets Putin during his visit to Moscow for bilateral ties

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Source: CCTV.com | 10-10-2007 10:36

Russian President Vladimir Putin (right) and Ukrainian Prime Minister Viktor Yanukovich met at the Rusian presidential residence Novo-Ogarevo.(File photo)

Ukrainian Prime Minister Viktor Yanukovych has met with Russian President Vladimir Putin in Moscow. This comes as Russia's state-controlled gas monopoly Gazprom announced it has reached a deal on settling Ukraine's gas supply debt.

The two leaders discussed Ukraine's debt over gas supplies that has raised concerns of a supply cut in Europe. Putin says he's glad the matter has been resolved.

Vladimir Putin said, "It's good that you have found the way to untangle this knot. We both should understand, and I want your Ukrainian colleagues to be aware of this, that the gas which is stored in Ukraine will be delivered, as a priority, to meet the needs of the Ukrainian consumers."

Gazprom says the agreement to settle the debt was signed after Monday's talks between Gazprom's chief executive and Ukraine's Energy Minister. Ukraine will repay 1.2 billion US dollars to Gazprom by transferring gas from underground storage facilities in Ukraine. The remaining 929 million US dollars is to be paid by the companies that supply gas on the Ukrainian market.

Both Gazprom and Ukraine say the dispute will not disrupt Russian gas exports to the European Union, as happened in early 2006 when Gazprom cut off supplies to Ukraine in a pricing dispute.

EU officials have voiced strong concerns and have urged parties to reach an agreement quickly. Gazprom supplies 25 percent of Europe's gas ... most of it is transported through Ukraine.