Russian gas reached the European Union on Tuesday for the first time in almost two weeks, marking the end to a dispute that left most of Eastern Europe without supplies during a bitterly cold spell.
Russia's state-controlled gas firm OAO Gazprom said Tuesday morning it had fully resumed exports to European consumers via Ukraine's pipeline system. Five hours later, gas reached Slovakia.
"Today we can finally welcome the resumption of gas supplies to Europe," European Commission President Jose Manuel Barroso said. "Our monitors on the ground report that gas is flowing normally," he said.
Russia stopped gas supplies to Ukraine on New Year's Day in a dispute over price and payments for natural gas. A week later, Moscow halted supplies to Europe accusing Ukraine of stealing the transit gas destined for Europe.
Ukraine, Russia and the EU had on Jan. 12 signed an agreement to deploy international monitors to oversee gas flows and resume gas transit. But that deal fell apart, leaving the EU wary that Monday's agreement might similarly unwind.
"That was the first time ever in my life when I saw agreements that were systematically not implemented, it's really incredible," Mr. Barroso said. The commission had been preparing legal action in case this deal fell through as well, he said.
Gazprom's deputy chairman, Alexander Medvedev, reassured Europe there is no risk of Russian gas supplies being frozen to Europe in the future. Russian Prime Minister Vladimir Putin and his Ukrainian counterpart, Yulia Tymoshenko, oversaw the signing Monday of a 10-year supply and transit contract between Gazprom and Naftogaz Ukrainy in Moscow.
"A similar shutoff of Russian gas to Europe will never happen again, if Ukraine will be in compliance with the contract signed," Mr. Medvedev said. The EU depends on Russia for almost a quarter of its gas needs. Around 80% of that gas flows via Ukraine's pipeline system.
Under Monday's deal between Gazprom and Naftogaz, all intermediaries including RosUkrEnergo -- a trading company owned by Gazprom and two Ukrainian businessmen -- will be eliminated. Gazprom will supply Ukraine with 40 billion cubic meters of gas this year at a 20% discount to European prices, which, according to Gazprom's Medvedev, will average $280 per 1,000 cubic meters. Starting in 2010, Ukraine will pay full price. Gazprom will pay $1.70 for the transportation of 1,000 cubic meters per 100 kilometers -- the same as last year's level. The transportation fee will also go to market price starting next year.