Russia, Ukraine Sign New Gas Agreement under Favorable Conditions

Russia and Ukraine have signed a new temporary gas agreement. Over the next three months the latter will buy the fuel at a price of USD 248 per 1,000 cubic meters, marking a decrease from the previously agreed price of USD 329. The policy will be implemented in the second quarter of the current year and the subsequent negotiatiations will follow.

The latest deal extension to the ''winter package'' was agreed on Wednesday and also clarified further details on the contract signed in 2009 for a ten-year term, Reuters reported.

Despite tensions between the two governments, Ukraine's Neftogaz and Russia's Gazprom managed to reach a largely considered favorable deal.

Ukraine's Energy Minister Volodymyr Demchyshyn stated on the ministry's website that the deal can be seen as a ''victory''.

According to the former ''winter package'' agreement, Ukraine was obliged to pay USD 100 per 1,000 cubic meters of gas and provide advance apyments.

Meanwhile, European Commission's Vice President Maros Sevcovic has stated that negotiations between the two countries are to be held in the middle of April.

Russian President Vladimir Putin, on the other hand, has been quoted as saying that conditions are to be negotiated for each annual quarter and will depend upon global oil prices.