German energy company RWE signed a natural gas contract with a Ukrainian energy company though one analyst said the deal wouldn't be a game changer.
An agreement between Naftogaz Ukrainy with RWE for imports of natural gas into Ukraine would help the country diversify its energy sector. The Ukrainian company said it needs separate contracts with RWE for volumes and price, reports Bloomberg News.
Ukrainian officials aim to break the Russian grip on the energy sector. Most of its natural gas comes from Russian energy company Gazprom. A spat between the two entities in 2009 left Europeans in the cold for weeks when Gazprom cut gas deliveries because of contract disputes.
Volodymyr Omelchenko, an analyst at the Razumkov Center for Economy and Political Studies, told Bloomberg that while the 100 billion cubic feet of natural gas suggested could be significant, it wasn't enough to upset Russia's role in Ukraine.
"This is quite significant but not critical for Ukraine and won't impact the policies of Gazprom on revision of the existing contract," he said.
Ukraine is eager to revise its contract with Gazprom because of the heavy financial burden.