Ukraine claims win in gas dispute

UKRAINE’S prime minister Yulia Tymoshenko yesterday proclaimed her country the winner in the latest natural gas dispute with Russia, even though higher gas prices are going to badly hurt the Ukrainian economy.

Tymoshenko told a Cabinet session that Ukraine has won “great conditions” under a gas deal that ended Russia’s two-week natural gas cutoff to European countries.

Monday’s deal doubled the price Ukraine has to pay for Russian gas in the first quarter of 2009. Gas prices are expected to fall later this year, but Ukraine is still expected to pay significantly more this year for Russian gas than it did in 2008.