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Russia gas deal set to be signed Russia and Ukraine sign gas deal
(8 minutes later)
Ukrainian Prime Minister Yulia Tymoshenko has flown to Moscow, where she is expected to sign a deal on gas prices, ending the 19-day dispute. Russia and Ukraine have signed a 10-year gas deal, bringing to an end their 19-day dispute.
Experts from the two state energy companies have been finalising the text of the document after an agreement was reached on Saturday night. Gas flows from Russia to Ukraine and Europe are expected to resume in the near future.
The EU gave a guarded response to the deal, saying the crisis would only be over once gas supplies resumed. The EU had earlier given a guarded response to the deal, after an agreement was reached at the weekend, saying the crisis would only be over once gas supplies resumed.
Millions of Europeans have been without heat due to the dispute. Millions of Europeans have been without heat because of the dispute.
See map of countries hit by gas dispute Ukrainian Prime Minister Yulia Tymoshenko had flown back to Moscow on Monday for a meeting with Russian Prime Minister Vladimir Putin after the two countries' gas companies, Russia's Gazprom and Ukraine's Naftogaz, succeed in hammering out the final details. See map of countries hit by gas dispute
A spokeswoman for Mrs Tymoshenko said she would fly back to Moscow on Monday if the two countries' gas companies, Russia's Gazprom and Ukraine's Naftogaz, succeed in hammering out the final details. The two leaders later announced the deal after marathon talks.
Later it was confirmed that she had left Kiev for Moscow.
An unnamed Russian government source told Itar-Tass news agency that Moscow also expected an agreement to be signed on Monday, with Prime Minister Vladimir Putin representing Russia.
The two leaders announced the deal after marathon talks in Moscow.
Under the deal they outlined, Ukraine will start paying for Russian gas at "European" rates from next year while equally charging Russia "market" rates for transit.Under the deal they outlined, Ukraine will start paying for Russian gas at "European" rates from next year while equally charging Russia "market" rates for transit.
In the current year, Ukraine will also begin paying a higher rate but with a 20% discount in return for keeping the transit charge at its 2008 level.In the current year, Ukraine will also begin paying a higher rate but with a 20% discount in return for keeping the transit charge at its 2008 level.
It is not yet clear how much these new rates will actually be, Reuters news agency notes.It is not yet clear how much these new rates will actually be, Reuters news agency notes.
As of Sunday evening, there had still been no official comment on the draft deal from Ukrainian President Viktor Yushchenko, whose office clashed with Mrs Tymoshenko on Ukraine's negotiating position just before the Moscow talks. Ukrainian President Viktor Yushchenko's office had clashed with Mrs Tymoshenko on Ukraine's negotiating position just before the Moscow talks.
'Hopeful moments''Hopeful moments'
"We welcome the progress achieved in the talks between the representatives of the Russian Federation and Ukraine announced this morning [Sunday] in Moscow," said Czech Industry Minister Martin Riman, whose country currently holds the EU presidency. On Sundya, before the deal was signed, Czech Industry Minister Martin Riman, whose country currently holds the EU presidency, welcomed the agreement, but urged caution.
"However, we remain realistic. Over the past few days we have seen several similarly hopeful moments. The only thing that counts for the EU is the resumption of gas supplies. "Over the past few days we have seen several similarly hopeful moments. The only thing that counts for the EU is the resumption of gas supplies.
"For the time being it is not clear when this resumption takes place.""For the time being it is not clear when this resumption takes place."
EU states import a quarter of their gas from Russia and 80% of supplies come via Ukraine. Almost 20 countries in Europe have been affected by the dispute.EU states import a quarter of their gas from Russia and 80% of supplies come via Ukraine. Almost 20 countries in Europe have been affected by the dispute.
Russia switched off gas supplies to Ukraine on 1 January in a row over payment. Transit supplies dried up within a week as Russia accused Kiev of stealing gas meant for other countries.Russia switched off gas supplies to Ukraine on 1 January in a row over payment. Transit supplies dried up within a week as Russia accused Kiev of stealing gas meant for other countries.
  
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