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12/29/08

FT.com - Russia and Ukraine in talks to end gas deadlock - by Roman Olearchyk in Kiev and Isabel Gorst

For the complete report from FT.com click on this link

Russia and Ukraine in talks to end gas deadlock - by Roman Olearchyk in Kiev and Isabel Gorst

An energy delegation from Ukraine arrived in Moscow on Monday for last-ditch talks aimed at resolving a gas debt dispute with Russia that could disrupt the supply of gas to Europe. Gazprom, Russia’s state-controlled gas group, has demanded that Ukraine settle $2bn of arrears for gas supplies this year or face a cut-off in deliveries from January 1.

The ex-Soviet countries are gearing up for a fourth energy stand-off in as many years, but have assured consumers in Europe that supplies will not be disrupted as happened during a 2006 dispute.

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