Bloomberg: Ukraine Must Seek New Russia Gas Deal as Military Tensions Rise

Ukraine needs to negotiate a new natural-gas deal with Russia just as the conflict between the two countries risks escalating again.

A gas-price agreement with Russian exporter OAO Gazprom expires at the end of the month and Ukraine requires fuel to replenish stockpiles before the winter. At the same time, a truce between the government in Kiev and pro-Russian rebels appears to be breaking down after fighting near the eastern city of Donetsk killed more than 20 last week.

Another “bloody clash is very possible in the coming weeks -- as a provocation -- amid talks on extending sanctions against Russia,” said Vasily Kashin at the Center for the Analysis of Strategies and Technologies in Moscow. “That’s a threat for a gas pact.”

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