Russia, Ukraine Agree to Natural Gas Deal
Published at
berean/iStockphoto/Thinkstock(MOSCOW) — Following a long period of negotiations, a $4.6 billion dollar agreement was made between Russia and Ukraine, by which Russia will supply sufficient natural gas to Ukraine to ensure heating during the winter.
Jose Manuel Barroso, president of the European Commission said he was “delighted” to announce the “major success.” The deal represented an, “agreement on their outstanding energy debt issues, and on an interim solution that enables supplies to continue this winter.”
Ukraine agreed to make two payments — $1.45 billion immediately and $1.65 more by the end of 2014 — to pay debts to Russia. The other half of the agreement involves Russia delivering gas at a pre-determined price, provided Ukraine makes monthly payments. Ukraine will also not be subjected to “take-or-pay” obligations as are in the current contract, which would require Ukraine to pay a penalty for any oil not taken up to an agreed upon ceiling.
Follow @ABCNewsRadio
Copyright 2014 ABC News Radio