Gazprom will pay Ukraine $2.9 billion to resolve legal 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 pay a $2.9 billion settlement to Kiev to end a legal dispute.
Under the new agreement, Russia’s Gazprom, which supplies over a third of Europe’s gas needs, would use an agent to book the transit of 225 billion cubic meters of the fuel via Ukraine over five years. 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.
Ukrainian Energy Minister Oleksiy Orzhel said on Saturday that under the new deal both parties had an option to extend the five-year term by another 10 years. He added that the transmission tariff for the Russian gas would rise.
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