The risk of a new gas dispute evolving this winter between Russia and Ukraine has been significantly reduced, after the two countries' prime ministers late Thursday reached a compromise deal, Ukraine's state gas company said Friday.
On Thursday, Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko said they had agreed to allow Ukraine to buy less gas next year.
In January, a row between the two countries resulted in Russian gas being cut to much of Europe for two weeks amid freezing temperatures. Fears of a new dispute have emerged as financial problems and political tensions in Ukraine could threaten payments for Russian gas this winter.
"You can't give a 100% guarantee, but this deal does significantly reduce the risk of a new gas conflict," said Naftogaz spokesman Valentin Zemlyansky.
Naftogaz plans to meet with representatives of Russia's state-controlled gas firm OAO Gazprom (GAZP.RS) next week to agree to the new terms outlined by the two prime ministers, Zemlyansky said.
Gazprom supplies over a quarter of Europe's gas needs, 80% of which is shipped through Ukraine.