Prime Minister Yulia Tymoshenko believes the signing of a long-term contract on supply of natural gas to Ukraine and its transit to Europe is a joint victory for Ukraine and Russia, according to Tymoshenko's web-site

"It is comforting to note that we have good victories because in 2009 we were able to sign a long-term contract, until 2019, on Russian gas deliveries to Ukraine, and the transit of Russian gas via Ukraine to Europe. It was a breakthrough in our relations in the gas sector and today we are both fulfilling this contract. And it is very important that you, as a strong country, are meeting us halfway in order to take into account the crisis conditions, and for the gas contracts to be implemented taking into account the effects of the crisis," Yulia Tymoshenko said during the Fifth Meeting of the Committee on Economic Cooperation of the Ukraine-Russia Intergovernmental Commission, which is currently taking place in Yalta. 

On January 19, 2009, Russia's Gazprom and Naftogaz of Ukraine signed new long-term distribution contracts for the transit of Russian gas to Europe via Ukraine and gas deliveries to Ukrainian consumers. The contracts do not provide for intermediaries between the companies. The contracts are valid from 2009 to 2019, inclusive. 

The transit contract maintains the reduced transit rate of $1.7 dollars for transportation of 1,000 cubic meters of gas for 100 kilometers throughout 2009. Starting on 1 January 2010, the transit rate will be calculated using the standard European formula. 

In accordance with the contract for gas supply to Ukraine, the price for gas will be calculated using the European pricing formula with a reduction factor of 0.8 (base price - $450 per 1,000 cubic meters). The price will be adjusted according to the formula on a quarterly basis.


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