Gas Blockade: Russia Backs Down

Via BBC:

Russian and Ukrainian officials have reached an agreement in their dispute over the price of gas.

Under the deal, it appears Russian gas will be mixed with cheaper supplies from Central Asia and Ukraine will buy gas for US$95 for 1,000 cubic metres.

Via CNN:

Though Russia rescinded its demand Sunday for a price hike from Ukraine and restored the flow, several countries were reassessing whether they wanted to continue to be beholden to Russia to meet their energy needs.

"We must not get fully relaxed, since the original reason of conflict between Russia and Ukraine is not resolved yet," said Janos Koka, Hungary's minister of economy and transportation.

He called for alternative energy sources to be explored and for the creation of a strategic storage supply.

The security of the gas supply "needs to be on the forefront of our perspectives," he said.

Reuters has a report on the deal here.

At Neeka's Backlog, Veronica Khokhlova discusses the complexity of the deal, which she suggests may not be all that it seems at first glance.

Ukraine - Oh My! has more.