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Sunday, 20 July, 2008, 02:10 GMT | more prices >>

Tymoshenko hails Kiev's 'gas victory'

By Upstream staff

Ukrainian Prime Minister Yulia Tymoshenko today described the country's gas supply deal as a "great victory" for Kiev.

The agreement avoids a threatened cut in shipments and eliminated intermediaries in trade.

"The gas talks were a great victory for the democratic team," Tymoshenko told a Cabinet meeting after the agreement was clinched in Moscow, minutes before a Moscow-imposed deadline on Ukraine to make good payment arrears or face supply cuts.

The row between the two former Soviet states had sent jitters through customers in Europe, who feared it could escalate into a repeat of early 2006, when a pricing dispute between Moscow and Kiev disrupted shipments to EU countries.

Tymoshenko returned to office as prime minister in December at the head of a government made up of advocates of the 2004 pro-Western "Orange Revolution".