Russia, Ukraine sign gas transit deal ahead of deadline

Ahead of deadline, Russia, Ukraine sign gas transit deal

Russian and Ukrainian gas organizations have arrived at an arrangement to guarantee the progression of Russian petroleum gas through Ukraine to Europe for the following five years, the different sides said Monday.

Ukraine is set to collect more than $7 billion (€6.25 billion) in gas transit fees by 2024 under the new deal with Gazprom, Ukrainian President Volodymyr Zelenskiy said on Monday evening.

The agreement signifies “vitality security and flourishing for Ukrainians,” Zelenskiy composed on Facebook. It is likewise a positive sign for organizations in the European Union subject to the solid conveyance of flammable gas from Russia.

“Europe realizes that we won’t bomb with regards to vitality security,” Zelenskiy included.

Kyiv and Moscow have more than once conflicted on gas costs and travel expenses before, leaving buyers in Europe every so often cut off from a key energy source.

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The different sides had been pushing to arrive at another agreement before the past one lapses on December 31, conceivably intruding on gas supplies to Europe.

Gazprom Chairman Alexey Miller said the agreement would go into power on Tuesday.

“Following five days of continuous exchanges in Vienna, authoritative choices have been made and last arrangements have been come to,” he said in an announcement.

Earlier this month, Gazprom agreed to pay some $2.9 billion to Ukraine’s Naftogaz in order to settle a long-running dispute on transit fees.

While the new deal is set to expire in 2024, there is an option to prolong it for another ten years.

Russia conveys about 40% of its gas for European markets through Ukraine.

However, Kyiv fears being sidelined after the controversial Nord Stream 2 pipeline becomes operational and connects Russia directly with its top buyer, Germany.

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