Russia Guarantees Steady Energy Supply to Ukraine

Russian Prime Minister Vladimir Putin and his Ukrainian counterpart have reached an agreement on the guarantee of stable energy supplies.

Millions of people in parts of southern Europe were left without heat last January after Russia cut off supplies for two weeks following a pricing dispute with Ukraine.

Putin was in good spirits after meeting with Ukrainian Prime Minister Yulia Tymoshenko and expressed relief that both sides had reached a deal and agreed to further cooperation.

"We have a mechanism [of cooperation], existing agreements and contracts. By working strictly within the framework of these agreements we can ensure the steady and smooth work of the gas transit systems in both Russia and Ukraine. I really hope that all earlier reached agreements will be implemented, and from our side we guarantee full implementation. It would be very good to meet the New Year without any shocks."

Putin had warned earlier this month that Russia would cut gas deliveries again if Ukraine stopped paying on time

Though Ukraine has so far settled all its bills on time, Tymoshenko has conceded that meeting the monthly payments for gas is a struggle due to the dire state of the economy.