Russia and Ukraine: Deal Or No Deal?

A European Union-brokered accord to resolve a gas dispute between Russia and Ukraine has been thrown into doubt.

The agreement reached over the weekend laid out the terms for Russia to resume gas supplies to Europe through Ukraine. But late on January 11, Russia accused Ukraine of altering the deal and declared it null and void.

Russian energy giant Gazprom’s chief executive, Aleksei Miller, along with Deputy Prime Minister Igor Sechin and Energy Minister Sergei Shmatko, have flown to Brussels to save the deal.

The visit comes as EU energy ministers hold their own emergency meeting to discuss the crisis and to try to find ways to help the countries worst affected by the gas shortages.

Russia and Ukraine appeared to have reached a solution to the dispute over the weekend, with both sides agreeing to allow EU officials to monitor gas flow through Ukraine. The three-way agreement called for EU observers to check gas movement through Ukraine, with monitors positioned at compressor stations along the transit route.

But Russia rejected the deal after the Ukrainian side added an amendment that Moscow said made a "mockery of common sense."

The latest reports indicate Ukraine has removed the conditions in its amendment. The EU's Czech Presidency and Russia's Gazprom are quoted as saying Kyiv has signed the deal, without the conditions.

"There is no further reason why Russia should not renew gas supplies," Czech Industry Minister Martin Riman told Reuters.

36-Hour Delay

A spokesman for Russian Prime Minister Vladimir Putin said Moscow could also sign the deal again on January 12. Supplies would then restart once the monitors were deployed.

"We keep our fingers crossed that this is not another game and we really have a proper document," said Dmitry Peskov.

Russia has said it will resume its pre-crisis supplies only when the gas-monitoring deal is signed by all sides and monitors have been deployed to Ukraine. It is expected it will take at least 36 hours for gas to reach the EU once the taps have been turned back on.

The crisis, now in its second week, has led to gas shortages across much of Europe, where temperatures have dropped below freezing.

Countries in Eastern and Central Europe have been worst hit by the disruptions. Slovakia has considered reopening a nuclear reactor it shut down last year to make up for its dwindling energy supplies, while Bulgaria has been forced to shut down schools because it can no longer heat them.

Thousands of people across Europe have been left without hot water or central heating in freezing temperatures as the crisis drags on. Many feel they have been caught in a broader political row between Russia and Ukraine over Kyiv’s long-term ambitions to join Western alliances, including NATO and the EU.

By Chloe Arnold
Copyright (c) 2008. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036.
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