Gas distributors across Europe breathed a sigh of relief in late November, when Russian gas producer Gazprom signed a new supply deal with Naftogaz, the Ukrainian gas importer that distributes much of Russia's gas exports to the rest of Europe. An agreement not to fine Naftogaz for its failure to take up, in 2009, the quantities of gas originally envisaged in its contract means that Ukraine should avoid a rerun of the supply stoppages that have dogged previous winters.
This is a rare sign of improved stability in Ukraine at a time of unparalleled political noise, as the country gears up for a hard-fought presidential election, which will begin in January 2010. In fact, the conditions could hardly have been more difficult when Naftogaz indicated in mid-2009 that it would not be able to repay a $500m loan participation note (LPN) issued through Standard Bank, which was due to mature on September 30, 2009.
