WORLD BRIEFING / EASTERN EUROPE - Los Angeles Times
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WORLD BRIEFING / EASTERN EUROPE

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times wire reports

Russia and Ukraine signed a 10-year natural gas supply deal to clear the way for a resumption of supplies to a freezing Europe, cut off for nearly two weeks by a dispute between the former Soviet states.

The European Union said it would not consider the crisis over until its monitors registered gas arriving from pipelines across Ukraine.

Under the deal, Ukraine will buy Russian gas at a 20% discount to European market prices in 2009, while Kiev agreed to retain preferential transit fees for Russia this year before both sides switch to a market-based price formula from 2010.

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Interfax news agency said the price would be less than $250 per 1,000 cubic meters.

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