Gazprom has formally proposed to Naftogaz to either extend a current 10-year deal supplying gas to Ukraine for its own use and for transit to Europe or to sign a new one-year agreement.

Gazprom has formally proposed to Naftogaz to either extend a current 10-year deal supplying gas to Ukraine for its own use and for transit to Europe or to sign a new one-year agreement. As a precondition for a deal, both companies would have to drop all legal claims and counterclaims, the faxed letter. Under a Stockholm Arbitration Agreement made earlier this year, Gazprom owes Naftogaz $3 billion. The EU is to mediate Russia-Ukraine gas transit talks in Brussels next week.