The EU and Ukraine agree a deal with Russia for gas

An agreement has been reached by the EU, Ukraine and Russia over the supply of natural gas throughout the Winter. It was thought the tensions between Ukraine and Russia would make reaching an agreement difficult, leading to worries of a natural gas shortage throughout Eastern Europe. The conflict between Ukraine and pro Russian soldiers in the east of the country has killed almost 8,000 people since it began in 2014.

The agreement has not been signed in a contract, although it has been agreed in principal with the Ukrainian energy minister stating it had ‘been agreed by all parties and we will stick with it’. The agreement will last from the 1st of October until March 2016, and will guarantee the flow of gas to the EU.

The deal is thought to be worth in the region of $500 million which will be paid directly to the state owned Russian company Gazprom. The gas price will be lower for Ukraine after Russia will bring it down to a similar level offered to other neighbouring countries.

This comes as welcome news to the energy industry in the EU, with assurance that domestic and business gas supplies will be secure throughout the winter when the demand spikes.