Russia, Ukraine agree deal on winter gas supplies

- EU-brokered agreement will ensure gas supplies to Ukraine, Europe over winter months

Ukraine agreed a deal with Russia late Friday to secure natural gas supplies over the winter.

The agreement gives Ukraine a discount to ensure the price is competitive and close to prices in Poland.

Russian Energy Minister Alexander Novak and his Ukrainian counterpart Volodymyr Demchyshyn signed an agreement in Brussels with EU energy chief Maros Sefcovic.

'All the technical details are agreed,' Sefcovic told a news conference. The deal still needs to be ratified in Moscow and Kiev.

The deal runs to March and will ensure the smooth flow of gas to the EU via Ukraine, as well as making sure Ukraine has sufficient gas stocks to cope with increased demand in the winter. Next month, Ukraine will store 2 billion cubic meters of gas from Gazprom, assisted by EU financing.

The supply of gas was interrupted in July in a row over pricing. The EU receives around 10 percent of its gas through Ukrainian pipelines from Russia and previous disputes between the former Soviet neighbors in 2006 and 2009 had disrupted the supply to Europe.

Sefcovic said a $19 discount would put the new price level at $232 per 1,000 cubic meters.

Both the Ukrainian and Russian economies have suffered due to the armed conflict in eastern Ukraine.

Reporting by Ata Ufuk Seker, Writing by Ugur Serhan Ozcan

Anadolu Agency

ugur.ozcan@aa.com.tr