Russian natural gas has started flowing into Ukraine on its way to Europe today, two weeks after a contract row cut supplies to about 20 European countries.
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 officials from Gazprom, Russia's gas export monopoly.
"Today at 10:05 [7.05am Irish time] Ukraine started taking Russian gas through Sudzha [compressor station in western Russia]," a Gazprom spokesman said.
"Now we are building up the volumes of deliveries on all routes to reach normal operation."
A spokeswoman for UkrTransGaz, a unit of Ukrainian state energy firm Naftogaz, confirmed Russian gas had started flowing into the Ukrainian pipeline network for transit to customers in Europe.
The dispute had reflected political tension between the two countries, with Russia opposed to formerly Soviet Ukraine's aspirations to join the Nato military alliance.
Gazprom Chief Executive Alexei Miller said that under the new contract Ukraine would pay $360 per 1,000 cubic metres of gas in the first quarter of this year, a sharp rise on the $179.5 that Kiev was paying for Russian gas last year.
The new price is likely to come down later this year as gas tracks falling oil prices, but it will still be a huge burden for a Ukrainian economy struggling with debt and sharp falls in the hryvnia currency.
Ms Tymoshenko said yesterday she expected an average annual price to be around $230-250 per 1,000 cubic metres.
Gazprom said it planned to pump 348.8 million cubic metres of gas via Ukraine to Europe today, slightly more than the daily volumes Russian was sending before the supply disruptions started.
Officials have said it would take 36 hours 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.
Austrian oil and gas group OMV said Russian gas could reach its hub in Baumgarten, in the east of the country, on Wednesday.
A Turkish Energy Ministry source said the flow of Russian gas via Ukraine into its pipeline system would begin on Wednesday and should be back to normal on Thursday.
Russia will also resume pumping gas to Ukraine itself, cut off on New Year's Day and surviving on dwindling stockpiles.
The European Union, which tried with growing frustration over the past two weeks to broker a deal, said yesterday it would not consider the crisis over until its monitors verified that gas had reached the bloc.
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 neighbours deeply divided over Kiev's ambition to join Nato.
Russia provides about a quarter of Europe's gas requirements and pumps 80 per cent 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.
Russia cut flows to Ukraine itself on January 1st because Kiev would not pay the gas price Gazprom was demanding. 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.
The supply disruptions hit about 20 countries across Europe. France, Britain and Germany drew on large reserves and alternative supplies to escape any serious problems.
But countries in Eastern Europe, including several with close ties to Russia, bore the brunt.
Slovakia's government said the disruptions forced about 1,000 companies to shut down or cut operations, and it briefly considered restarting a Soviet-era nuclear reactor. In Bulgaria, many households were left without adequate heating.
Reuters