The gas crisis of 2009 began with a failure to reach an agreement on gas prices and supplies for 2009. Ukraine owed a debt of $2.4 billion to Gazprom for gas already consumed, and Gazprom requested payment before the commencement of a new supply contract. In December 2008, despite Ukraine's repayment of more than $1 billion of its debt, Gazprom maintained its position, intending to cut the supply of natural gas to Ukraine on 1 January 2009, if Ukraine did not fully repay the remainder of $1.67 billion debt in natural gas supplies and an additional $450 million in fines levied by Gazprom. On 30 December, Naftohaz paid $1.522 billion, of the outstanding debt, but the two parties were not able to agree on the price for 2009. Ukraine proposed a price of $201, and later increased their proposed price to $235, while Gazprom demanded $250 per 1,000 cubic meters. Negotiations between Gazprom and Naftohaz were interrupted on 31 December. On 1 January 2009, exports to Ukraine of 90 million cubic meters of natural gas per day were halted completely at 10:00 MSK. Exports intended for transhipment to the EU continued at a volume of 300 million cubic meters per day. President Yushchenko requested that the European Union become involved in the settlement of this dispute in a letter to the
president of the European Commission Jose Manuel Barroso. A Ukrainian delegation including
Fuel and Energy Minister Yuriy Prodan,
Deputy Foreign Minister Konstantin Yeliseyev, the president's Representative for Energy Issues Bohdan Sokolovsky, and Deputy Head of Naftohaz Vadym Chuprun visited the Czech Republic as the first stop on a tour of a number EU member states to hold consultations on the gas crisis. On 2 January 2009, Hungary,
Romania, and Poland reported that pressure in their pipelines had dropped.
Bulgaria also reported that their natural gas supply was dropping, affecting the shipment of natural gas to
Turkey, Greece, and
Macedonia. Furthermore, the United Kingdom Government announced that it was preparing to enter its gas reserves after gas pressure had dropped from the continent. On 4 January 2009, both RosUkrEnergo and Gazprom filed lawsuits against Ukraine and Naftohaz respectively with the
Stockholm Tribunal of the Arbitration Institute. Ukraine also filed lawsuits with the tribunal. According to Naftohaz, RosUkrEnergo owes the company $40 million for services in transportation of natural gas. On 5 January 2009, Kyiv's economic court banned Naftohaz from transshipping Russian natural gas in 2009 at the price of $1.60 per 1,600 cubic meters per 100 kilometers. The court declared contracts made by Naftohaz for the transit of natural gas through Ukraine void because the contracts were signed by Naftohaz without authorization from the Cabinet of Ministers of Ukraine. On 30 March 2010, the Stockholm tribunal ordered Naftohaz to pay RosUkrEnergo around $200 million as a penalty for various breaches of supply, transit, and storage contracts. On 5 January 2009 Russian prime minister Vladimir Putin instructed Gazprom CEO
Alexei Miller to reduce natural gas exports to Europe via transshipment through Ukraine by quantities equivalent to the amounts of gas which Ukraine had allegedly diverted from the pipelines since deliveries ended on 1 January 2009. On 7 January, all Russian natural gas exports via Ukraine were halted amid accusations between the two parties. Several countries reported a major fall in supplies of Russian gas starting on 7 January;
Bulgaria,
Moldova, and
Slovakia were among the most affected by these supply drops. Talks between Naftohaz and Gazprom resumed overnight on 8 January 2009. Ukraine agreed to guarantee the unfettered transport of natural gas on the condition that Gazprom would guarantee and supply technical gas for Ukraine's gas transit system to function; this was denied by Russia. The supplies to Europe were not restored although the European Union, Ukraine, and Russia agreed to the deployment of an international monitoring group to the gas metering stations between Russia and Ukraine. Naftohaz blocked the transit of gas, blaming a lack of pressure in the pipeline system and saying the design of the Soviet-built pipeline meant it could not ship gas entering through the
Sudzha metering station governing gas leaving through the
Orlivka metering station without cutting off the
Donetsk region,
Luhansk region, and portions of the
Dnipropetrovsk region of Ukraine. Naftohaz suggested a technically more feasible alternative through the
Valuyki and Pisarevka metering stations but was refused. summit on 19 January 2009, by
Oleh Dubyna and
Alexei Miller (with
Yulia Tymoshenko and
Vladimir Putin are standing in the background) On 17 January 2009, Russia held an international gas conference in
Moscow. The EU was represented by the Presidency, the Czech minister of industry and trade
Martin Říman, and the EU energy commissioner Andris Piebalgs, so that the European Union could speak with one voice. Ukraine was represented by the prime minister Yulia Tymoshenko. The conference did not achieve any solution to the crisis, and the negotiations continued bilaterally between Prime Ministers Putin and Tymoshenko. Early on 18 January 2009, after five hours of talks, Putin and Tymoshenko reached a deal to restore gas supplies to Europe and Ukraine. Both parties agreed that Ukraine would start paying European prices for its natural gas, less a 20% discount for 2009, and that Ukraine would pay the full European market price starting in 2010. In return for the discounts for 2009, Ukraine agreed to keep its transit fee for Russian gas unchanged in 2009. The two sides also agreed not to use intermediaries. On 19 January 2009,
Gazprom CEO Alexei Miller and the head of Naftohaz Oleh Dubyna signed an agreement on natural gas supply to Ukraine for the period of 2009–2019. Gas supplies restarted on 20 January 2009, and were fully restored on 21 January. According to the EU Commission and Presidency, the Russia–Ukraine gas disputes caused irreparable and irreversible damage to customers' confidence in Russia and Ukraine, causing Russia and Ukraine to no longer be regarded as reliable partners. There were also accusations of illegal diversion of natural gas by Ukraine; however, these accusations were not confirmed. The issue of technical gas used to fuel compressor stations and to maintain gas pressure in the pipeline network remained unclear. Some sources asserted that the responsibility for providing the technical gas falls to Ukraine, while others say that this is the responsibility of Gazprom. There were several theories as to alleged political motives behind the gas disputes, including Russia exerting pressure on Ukrainian politicians or attempting to subvert EU and NATO expansions to include Ukraine. Others suggested that Ukraine's actions were being orchestrated by the United States. In August 2009, it was agreed that loans worth $1.7 billion would be given to Ukraine to help it provide stable supplies of Russian gas to Europe by the
International Monetary Fund, the
World Bank, and the
European Bank for Reconstruction and Development, in return for reforms in Ukraine's gas sector. On 28 December 2009, the
Slovakian government announced that Russia warned it would stop oil supplies to Slovakia, Hungary, and the Czech Republic over a transit price dispute with Ukraine. However, the next day, Ukraine's
Naftohaz issued a statement confirming that Russia agreed to a 30% increase in the transit fees through Ukraine. The alleged rise in the tariff would be from $7.8 to $9.50 (or €6.6) per tonne of oil going through Ukraine in 2010. Additionally, unlike previous payments, new payments would be made in Euros as this was one of Ukraine's demands. Russia and Ukraine also agreed on the volume of oil to be transported through Ukraine. The overall amount of oil to be transported to Slovakia, Czech Republic, and Hungary through Ukraine in 2010 will be 15 million tonnes—a decrease from 17.1 million tonnes in 2008. ==2010 natural gas agreement==