Gas Transport to Europe to Resume After Deal

The deal was reached between Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko.

Ukraine would be offered a 20% discount on the market price for Russian natural gas deliveries this year, if it agrees to keep transit fees for pumping gas to Europe via its pipelines at the 2008 level.

Then from 2010 on, the two neighboring countries will switch to European market prices.

INn a televised statement, Tymoshenko said:

'Negotiations were very hard, but we have come to mutual understanding ... All natural gas supplies will resume as soon as these documents are signed.'

Europe receives 25% of its natural gas from Russia, 80% of which flows through the Ukraine. However, despite the agreement, experts say that after the taps are opened it could take up to three days for gas supplies to reach Europe and for pressure to normalize.