2005–2006 Russia–Ukraine gas dispute
Open-knowledge reference entry

The 2005–06 Russia–Ukraine gas dispute was between Ukrainian state-controlled oil and gas company Naftogaz Ukrainy and Russian national gas supplier Gazprom. The disagreements concerned natural gas supplies, prices and debts. The conflict started in March 2005, ended in January 2006 and, in addition to the gas companies, involved politicians from both countries.
The conflict began when Russia claimed that Ukraine was not paying for gas and was diverting gas bound from Russia to the European Union from pipelines that crossed the country. Ukrainian officials at first denied the last accusation, but later Naftogaz admitted it used some gas intended for other European countries for domestic needs. The dispute peaked on January 1, 2006 when Russia cut off supply. The cutoff affected gas supplies to European countries that depended on Russian natural gas. On January 4, 2006 a preliminary agreement between Ukraine and Russia was achieved, the supply was restored and the situation calmed.
Historical background
After the collapse of the Soviet Union, Russia began charging market prices to Ukraine for oil in 1993, but both Ukrainian gas import prices and transit fees for Russian exports to Europe were set in bilateral negotiations, well below European levels.
In 2004–2005, about 80% of Russian gas exports to the European Union passed through Ukraine.
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