(MENAFN- Khaleej Times) EU Commission President Jose Manuel Barroso, whose offices mediated the talks for months, said the EU will also help cash-strapped Ukraine with the payments through aid and guarantees.
Brussels: Moscow and Kiev on Thursday clinched a multi-billion dollar deal that will guarantee that Russian gas exports flow into Ukraine and beyond to the European Union throughout the winter despite their intense rivalry over the fighting in eastern Ukraine.
EU Commission President Jose Manuel Barroso, whose offices mediated the talks for months, said the EU will also help cash-strapped Ukraine with the payments through aid and guarantees.
EU energy chief Guenther Oettinger said that "we can guarantee a security of supply over the winter," not only for Ukraine but also for the EU nations closest to the region that stood to suffer should the gas standoff have worsened.
Under the deal, Ukraine would pay for its outstanding debt by making a $1.45 billion deposit without delay, and $1.65 billion by year's end. The final sum of debt would be determined through arbitration. For new gas, Russia will only deliver after pre-payment and Ukraine intends to buy some $1.5 billion by the end of December.
The EU said in a statement it had been "working intensively" with international institutions and Ukraine to secure funds to pay for gas delivery in the coming winter. "Unprecedented levels of EU aid will be disbursed in a timely manner," it said.
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