Russia, Ukraine, reach deal on gas

MOSCOW, Feb. 13 (UPI) -- Ukraine averted a cut in supplies of natural gas from Russia's Gazprom.

The two countries' presidents reached an agreement before Gazprom's deadline passed and Ukraine will start paying the debt for gas for 2007 on Feb. 14, Ukrainian President Viktor Yushchenko said.

Russian President Vladimir Putin had previously warned that Europe's energy security relied on Ukraine and Gazprom reaching a deal, the Toronto Star reported.

Gazprom, which also supplies Ukraine with gas from Central Asia, had threatened to stop sending Russian gas at 6 p.m. Moscow time. The producer said Ukraine owed a total of $1.5 billion. Russia briefly cut supplies in January 2006 after Ukraine refused to accept a quadrupling of prices.

The 2006 standoff was resolved when Ukraine agreed to double the price paid for gas and make Swiss-registered gas trader RosUkrEnergo, half-owned by Gazprom, its sole fuel importer.