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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Russia says Europe gas flow to restart Tue Jan 20, 2009 12:37am EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Tanya Mosolova and Ron Popeski MOSCOW/KIEV (Reuters) - Russia said it would resume gas supplies to Europe via Ukraine at 0700 GMT on Tuesday, nearly two weeks after a Moscow-Kiev contract row cut flows to European countries in mid-winter. The order to start pumping gas again followed the signing of a 10-year gas contract between Moscow and Kiev and late-night talks between Ukrainian Prime Minister Yulia Tymoshenko and Russia's Gazprom gas export monopoly. Officials have said it would take 36 hours or more after the restart for the pipeline system to become operational again and for gas to reach Europe, parts of which have had to ration supplies to households and businesses because of the dispute. "From 10 a.m. (0700 GMT) on January 20, Gazprom and (Ukrainian state energy company) Naftogaz will start to bring the system into normal operation for supply and transit," Gazprom spokesman Sergei Kupriyanov told Reuters. "(This is) in accordance with instructions which were issued at 4 a.m. by the heads of the two companies," he said after the talks between Tymoshenko and Gazprom officials, which lasted until the early hours of Tuesday. The European Union, which tried with mounting frustration over the past two weeks to broker a deal, said it would not consider the crisis over until its monitors verified that gas had reached the bloc. "For the EU, the decisive moment will come when renewed supplies are registered at its borders," Martin Riman, industry minister for the Czech Republic, which holds the EU's rotating presidency, said on Monday. Russia will also resume pumping gas to Ukraine itself, cut off on New Year's Day and surviving on dwindling stockpiles. Even once supplies resume, the effects are likely to linger. Russia's standing as an energy supplier is under new scrutiny and Europe is exasperated that its gas flows were blocked by two neighbors deeply divided over Kiev's ambition to join NATO. Russia provides about a quarter of Europe's gas requirements and pumps 80 percent of this via Ukraine. A contract row three years ago also caused supply problems, though that time the dispute was resolved after a few days with minimum disruption. UKRAINE DEAL Russian media quoted Tymoshenko as saying after her talks in Moscow that under the new contract her country would pay about $230 per 1,000 cubic meters of gas in 2009. That is a figure that officials in Ukraine, struggling with a deep economic slump, say they can just about afford to pay. Gazprom has yet to announce the price set out in the new contract. Kiev paid $179.5 for its gas last year. Russia cut flows to Ukraine on New Year's Day because Kiev would not pay higher prices for the gas it uses. Six days later, export flows to Europe through Ukraine also ceased after Russia accused Kiev of siphoning off gas intended for export. Ukraine's pro-Western leaders denied stealing gas, and countered that Moscow was trying to blackmail European customers by halting gas supplies. Continued... 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