Russia, Ukraine agree on gas deal

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Source: CCTV.com | 02-13-2008 08:35

Russian and Ukrainian leaders say they've reached a deal to settle Ukraine's gas debt. It will avoid a threatened cutoff in supplies that has rattled consumers in the European Union.

Russia's President Vladimir Putin (R) and his Ukraine counterpart Viktor Yushchenko exchange documents as  they meet in Moscow's Kremlin.  (AFP/Pool/Sergei Karpukhin)

Russian President Vladmir Putin and Ukrainian President Vikto Yushchenko say they negotiated a settlement of Ukraine's debt and agreed on terms for gas supplies.

Vladmir Putin, Russian President, said, "Today we have heard from our partners that they will start paying out debts, and we also agreed on principles of cooperation for the year 2008 and for coming years."

Russia's state-controlled natural gas monopoly, Gazprom, says Ukraine owes 1.5 billion US dollars for gas.

Ukrainian Prime Minister Yulia Tymoshenko acknowledged the country has a gas debt, saying it is 1.07 billion US dollars.

Yushchenko said the two sides agreed Ukraine will pay the current price of 179 US dollars per 1-thousand cubic meters through to the end of the year.

Vikto Yushchenko, Ukrainian President, said, "We act on the presumption that the calculations for the year 2008 are based on the prices of 2007. The payment is to start next Thursday."

Meanwhile, Putin also said Russia could point nuclear missiles at Ukraine if it joins NATO and accepts the deployment of anti-missile defenses on its territory.

Yushchenko responded by saying Ukraine has the right to form its own foreign and defense policies. He points out the Ukrainian constitution does not allow for the deployment of foreign bases on its territory.

Editor:Zhang Pengfei