EU promises to help secure funds to reform Ukraine's energy sector; believes deal will avert supply crisis. The European Commission has announced a deal with Ukraine which it said should avert a disruption of Russian gas deliveries next winter. José Manuel Barroso, the president of the European Commission, said: "The agreement should provide the stability needed to significantly reduce the risk of a further gas crisis". In January, gas deliveries to European markets were disrupted because of a pay dispute between Naftogaz and Russia's Gazprom. Around 80% of Russia's gas shipments to Western markets go through Ukraine. Under today's agreement, which the Commission helped to broker, international financial institutions will consider providing up to €1.7 billion in loans to support reform of the Ukrainian gas sector. In return, Yulia Tymoshenko, the Ukrainian prime minister, has made commitments to raise gas prices for domestic consumers to economically viable levels, restructure Naftogaz, the state gas company, and improve market transparency.
The European Commission has announced a deal with Ukraine which it said should avert a disruption of Russian gas deliveries next winter.
José Manuel Barroso, the president of the European Commission, said: "The agreement should provide the stability needed to significantly reduce the risk of a further gas crisis".
In January, gas deliveries to European markets were disrupted because of a pay dispute between Naftogaz and Russia's Gazprom. Around 80% of Russia's gas shipments to Western markets go through Ukraine.
Under today's agreement, which the Commission helped to broker, international financial institutions will consider providing up to €1.7 billion in loans to support reform of the Ukrainian gas sector.
In return, Yulia Tymoshenko, the Ukrainian prime minister, has made commitments to raise gas prices for domestic consumers to economically viable levels, restructure Naftogaz, the state gas company, and improve market transparency.
Yulia Tymoshenko, the Ukrainian prime minister, has made commitments to raise gas prices for domestic consumers to economically viable levels, restructure Naftogaz, the state gas company, and improve market transparency
You all read that, you're witnesses.
