Russia, Ukraine reach gas pact

New York Times News Service

Published: Monday, Jan. 19 2009 3:30 a.m. MST

MOSCOW — The prime ministers of Russia and Ukraine agreed Sunday to resolve their gas dispute, with an understanding that prices would be pegged to the price of oil, but with a discount for 2009 that means Ukraine could pay little more than it did last year.

The deal, expected to be signed Monday, came after a din of criticism from officials in Europe, where more than 20 countries have been affected since a Jan. 6 gas cutoff and at least 12 people have frozen to death in a dispute that is ostensibly over prices and transit fees.

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