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Russian gas to reach Europe in near future: Ukraine
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Russian gas flowing through Ukraine will reach European consumers late Tuesday, Ukrainian President Viktor Yushchenko said.

"We will do our best to make it reach European consumers by the end of today," Yushchenko said on Tuesday during telephone talks with European Commission President Jose Manuel Barroso, confirming that Russian gas had arrived in Ukraine's territory after Russian gas giant Gazprom resumed gas supply to Europe via Ukraine on Tuesday morning.

On Monday, Gazprom and Naftogaz signed 10-year gas supply and transit deals, ending a contract row which left parts of Europe without gas supplies in midwinter.

Under the deal, Ukraine will buy Russian gas at a 20 percent discount to European market prices this year. In return for the discount, Ukraine agreed to keep its transit fees for Russian gas to Europe at a preferential level in 2009. Both sides will switch to a market-based price formula from 2010.

Russia cut off gas supplies via Ukraine to Europe on Jan. 7, one week after it halted gas supplies to Ukraine due to failed talks on pricing and terms of fees.

Gazprom reopened its taps to Europe on Jan. 13 under a three-way agreement signed by the EU, Ukraine and Russia, but no gas reached Europe.

Russia accused Ukraine of blocking the gas flow, while Ukraine argued that Russia's choice of the gas route was technically "unacceptable."

Russia supplies a quarter of EU's gas needs, 80 percent of which is transited through Ukraine.

(Xinhua News Agency January 20, 2009)

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