Ukraine, Turkmenistan Reportedly Reach Gas Deal

A gas worker in Ukraine checks equipment (epa)

24 February 2006 -- Reports say Ukraine and Turkmenistan have resolved a festering gas dispute.

Turkmenistan had accused Ukraine of owing it $160 million for gas supplies. Oleksiy Ivchenko, the head of Ukraine's state Naftohaz oil and gas company, said earlier this week that Kyiv had no gas debts with Turkmenistan.

ITAR-TASS quoted Ukraine's ambassador to Turkmenistan, Viktor Mayko, as saying Ukraine has agreed to a retroactive five-year plan to buy Turkmen gas. The agreement covers 2002 to 2006.

Mayko says Ukraine will purchase some 40 billion cubic meters of Turkmen gas in 2006 for up to $60 per 1,000 cubic meters.

Gas from Turkmenistan is part of a deal reached between Russia and Ukraine after Russia suspended gas supplies to Ukraine on 1 January.

(ITAR-TASS)