Russia And Ukraine Avert A Natural Gas Crisis

Despite fears of a deep, and cold winter — one made worse by a ravaging flu in the Ukraine — it appears Russia’s neighbour will be getting natural gas this year, despite its financial problems.

AFP: Earlier this year, Russia also agreed to reduce the volume of gas Kiev must acquire this year without imposing fines. That agreement however has yet to be put in writing.

Ukraine’s Naftogaz has said it is meant to buy 52 billion cubic metres of Russian gas next year but may only need 27 bcm.

It could have faced potentially crippling multibillion-dollar fines if it did not pay for all the gas it had contracted.

Russia has repeatedly warned of Ukraine’s financial problems in the past weeks.

Putin also said Moscow agreed with Kiev’s decision to boost the tariffs Russia pays for the transit of Russian gas to Europe through Ukraine by 60 per cent from next year.

More background from Russia Today:

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.