Russia, Ukraine work out pipeline kinks

A woman passes by a gas pipe of the gas-compressor station in the small Ukrainian city of Boyarka, near Kiev.

TEXT OF STORY

Steve Chiotakis: Russia and Europe are getting back together. At least in natural gas pipeline form. The Russian dispute with Ukraine halted gas flow into Europe because the line ran through Ukraine. From London, Stephen Beard reports.


Stephen Beard: Russia began pumping again after finally striking a deal with Ukraine. The two sides have signed a 10-year contract. Ukraine will pay double the price it paid last year for natural gas, and Russia will pay the Ukrainians higher transit fees.

Europeans will be relieved. Over the past two weeks, 20 countries have lost supplies. Millions have been without heat.

Julian Lee is with the Center for Global Energy Studies. He says after this dispute, there are no winners.

Julian Lee: Both Ukraine and Russia have done very great damage to their reputations as reliable suppliers and transit countries of gas. I think it's been a very sad and sorry exercise for all concerned.

He says Europeans will now step up their efforts to reduce their reliance on Russian gas.

In London, this is Stephen Beard for Marketplace.

About the author

Stephen Beard is the European bureau chief and provides daily coverage of Europe’s business and economic developments for the entire Marketplace portfolio.

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