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Russia and Ukraine sign gas deal Russia and Ukraine sign gas deal
(about 1 hour later)
Russia and Ukraine have signed a 10-year gas deal, bringing to an end their long-running dispute. Russia and Ukraine have signed a 10-year gas deal, which their leaders say will bring their long-running dispute to an end.
Gas flows from Russia to Ukraine and Europe are expected to resume in the near future. Russia says its energy company Gazprom has been told to resume gas flows to Ukraine and Europe.
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. The EU had earlier given a guarded response, saying the crisis would only be over once gas supplies resumed.
Millions of Europeans have been without heat because of the dispute. Millions of Europeans have been without heat because of the dispute, which began on 1 January.
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. name="top"> class="bodl" href="#map">See map of countries hit by gas dispute No delays
The two leaders later announced the deal after marathon talks. Ukrainian Prime Minister Yulia Tymoshenko said the transit of Russian gas to European consumers would begin as soon as the gas reached Ukraine.
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. During a joint news briefing with Russian Prime Minister Vladimir Putin, Ms Tymoshenko said there would be "no delays" in supplies from the Ukraine side.
See map of countries hit by gas dispute
Officials say the restored gas shipments could take up to 36 hours to cross Ukraine and reach European customers, the Associated Press.
Ms Tymoshenko had flown back to Moscow on Monday for a meeting with Mr Putin after the two countries' gas companies, Gazprom and Ukraine's Naftogaz, succeed in hammering out the final details.
Under the deal they outlined, Ukraine will start paying for Russian gas at "European" rates from 2010 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.
Ukrainian President Viktor Yushchenko's office had 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'
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. The BBC's Rupert Wingfield-Hayes, in Moscow, says Prime Ministers Tymoshenko and Putin seem to be back on good terms again, a change of tune from a few days ago.
"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. The reputations of Russia, as a gas supplier, and Ukraine, as gas transit country, have been damaged by the affair, our correspondent says.
"For the time being it is not clear when this resumption takes place." On Sunday, before the deal was signed, Czech Industry Minister Martin Riman, whose country currently holds the EU presidency, welcomed the agreement, but urged caution.
"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."
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 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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