After days of delays and weeks of negotiations, Naftogaz Ukrainy and RosUkrEnergo finally created the joint venture that will deliver natural gas to Ukraine

The move ends almost one month of talks and comes after RosUkrEnergo has finally bowed to the pressure from Naftogaz and agreed to keep gas prices unchanged at $95/1,000 cubic meters during five years, till 2010.

Russia's energy giant Gazprom confirmed Thursday it had formed a joint gas distribution venture, UkrGazEnergo, on a parity basis with Ukraine's national energy company Naftogaz.

"In line with an agreement on market principles of cooperation in the gas sphere concluded between Gazprom and Naftogaz on January 4, 2006, the Ukrainian energy company and RosUkrEnergo have formed a joint venture UkrGazEnergo on a parity basis," Gazprom said in a statement.

UkrGazEnergo would be registered in Ukraine in the near future and Gazprom's Deputy Chairman Alexander Ryazanov had been elected its chairman of the board, the statement said.

The statement also said the new joint venture would primarily supply natural gas and other energy resources to Ukrainian consumers.


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