Russia, Ukraine outline gas transit deal
Russia and Ukraine announced terms of a new gas transit deal on 21 December 2019, under which Moscow will supply Europe for at least another five years via its former Soviet neighbour and pay a $2.9 billion settlement to Kiev to end a legal dispute.
- The deal is a major breakthrough for both countries, which have been seeking to resolve disputes over Ukraine’s eastern Donbass region and the Crimea peninsula, which Russia annexed in 2014.
- 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 metres (bcm) of the fuel via Ukraine over five years.
- Of the total, 65 bcm would be shipped in 2020, falling to 40 bcm in 2021 and in each of the subsequent years, Gazprom said.
- The Russian gas company would also pay Ukraine the $2.9 billion before Dec. 29, in line with the amount proposed in arbitration rulings between Gazprom and Ukrainian energy firm Naftogaz in 2018.