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Russian energy supplier could resume Ukraine gas supplies shortly - 12/01/2009

Russian energy supplier Gazprom may soon resume the supply of gas to Ukraine following progress on an agreement between the two countries, reports the BBC.

Ukraine has reportedly agreed to allow unrestricted gas supplies through to neighbouring European countries, and monitors from the European Union will be checking that operations continue as normal. Negotiations had stalled as Russia claimed that Ukraine had again denied owing payments for its gas supply. Even if the supply to Ukraine is reactivated today, it could be several days before some countries have their full supply returned.

Russia had accused Ukraine of siphoning off gas intended for other countries, as several of Ukraine's European neighbours reported drops in their gas supplies once Ukraine had been cut off.

The EU will be looking for ways to avoid such a dispute in the future, as many people in eastern Europe have been unable to heat their homes as a result.

The dispute has also caused the UK to export gas, prompting concerns over wholesale costs and the likelihood of British households receiving cheap energy anytime soon.

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