New Cold War

Russia, Ukraine Gas Deal

Russia and Ukraine's staring contest over a new natural gas agreement was threatening to take the EU with it, as the pipeline carrying much of the continent's gas runs through the Ukraine, but the two sides finally struck a deal on Sunday. Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Yulia Tymoshenko said gas would start flowing again as soon as their state-controlled companies signed a new contract. Under the agreement, Ukraine will keep paying its low price on gas, but will accept higher prices in exchange for higher fees for use of its pipeline in 2010.