Russia-Ukraine ‘Gas War III’ Ends in a Truce, but What Next?

Russia-Ukraine ‘Gas War III’ Ends in a Truce, but What Next?

WARSAW, Poland -- Minutes before a 6 p.m. deadline on Feb. 12, Ukrainian President Viktor Yushchenko and Russian President Vladimir Putin resolved the latest dispute between the two countries over natural gas debts -- averting a shutoff of supplies to Ukraine. Russia and Ukraine now have the opportunity to create a more transparent and direct system of energy trading. What are the implications of this latest dispute for EU-Russian energy relations?

On Feb. 7, Gazprom had presented Ukraine with an ultimatum -- pay a past due bill of $1.5 billion, or Russian gas supplies would be cut off. As part of the deal to avoid the cutoff, Gazprom CEO Aleksei Miller announced Feb. 12 that his company and Ukraine's state-owned Naftohaz Ukrainy would dismantle an opaque system of gas intermediaries and set up two joint ventures with equal participation to supply energy directly to Ukraine. During their meeting, Putin promised Yushchenko that current price structures would be preserved. Ukraine is expected to begin repaying debts to the Russian energy giant immediately.

Third in a Series

Keep reading for free!

Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • Regular in-depth articles with deep dives into important issues and countries.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
  • The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.

More World Politics Review