Russian President Vladimir Putin said on Wednesday the new gas deal between Russia and Ukraine will ensure stable gas supply to western European countries for many years.
Hours after the two countries struck a five-year deal on gas supply, Putin hailed the accord saying it will have a positive impact on bilateral relations and "create stable conditions for supply of Russia fuel to western European partners for many years to come."
Under the deal, Russian gas giant Gazprom will sell gas for US$230 per 1,000 cubic meters to the Rosukrenergo trading company, which will mix the Russian gas with gas from Central Asia and sell the blend to Ukraine for US$95 per 1,000 cubic meters.
The two sides also agreed on a new price for transit of gas through Ukraine to Europe of US$1.60 for every 1,000 cubic meters transported 100 km, up by nearly 50 percent from the previous price of US$1.09.
Putin's remarks added to Russian efforts to portray itself as a reliable gas supplier to European countries after a bitter pricing dispute led to a cutoff of Russian gas to Ukraine on Sunday and sent shivers through parts of Europe as gas supplies fed by a key pipeline through Ukraine dipped severely during what has been one of the coldest weeks of the winter.
Gas supplies in affected countries returned to normal levels after Gazprom pumped extra gas into pipelines running through Ukraine.
Gazprom provides about half the gas consumed in the European Union (EU) and 80 percent of that amount is sent through pipelines crossing Ukraine.
After an emergency session on Wednesday in Brussels to discuss Europe's energy security, EU officials said Russian gas remains the backbone of the EU's energy supply but the 25-nation bloc has to learn the lesson of what has happened in the last few days and should examine other types of energy.