CNN.com - Russia, Ukraine praise gas deal

• Europe press slams Putin 'gas row'

• European customers hit by gas cuts

• Q&A: Impact of Russia's gas supply cuts

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(CNN) -- Moscow and Kiev officials have praised a deal to end a pricing dispute for Russian natural gas that caused shortages in Ukraine and throughout Western Europe.

"Two nations won, Russia and Ukraine; Europe won; it is common sense that won," Ukrainian Prime Minister Yuriy Yekhanurov told reporters Wednesday after an early morning agreement was reached between energy officials from both countries.

Ukrainian President Viktor Yushchenko also hailed the deal, saying the "Ukrainian economy is mostly ready for new market conditions," The Associated Press quoted his office as saying.

His Russian counterpart Vladimir Putin said the agreement would secure stable long-term export supplies for Europe.

"This creates stable conditions for Russian gas supply to European customers for many years ahead," Putin told the head of Russian gas monopoly Gazprom, Alexei Miller, at a meeting, Reuters reported.

The agreement was announced in a joint statement at about 10 a.m. (0700 GMT) -- three days after Russia stopped shipments of natural gas to its western neighbor.

The Ukrainian natural gas company agreed to a price of $230 per thousand cubic meters of gas, AP reported, citing the head of Russia's gas monopoly, Gazprom.

Ukraine had been paying $50 per thousand cubic meters of gas when Russia demanded more from its Western-leaning neighbor.

Some observers said political motivations, not commercial ones, appeared responsible for the move, and could signify that Putin wanted to use his country's vast energy supplies to ensure Russia once again becomes a regional power.

They noted that Yushchenko was a Western-leaning politician who won election over a Russian-backed candidate a year ago.

Ukrainian officials had earlier claimed the price hike is an attempt by Russia to penalize the former Soviet republic for its current foreign policy. Russia maintains the increase will bring prices in line with global gas costs.

The Ukraine's new rate of $230 per thousand cubic meters of natural gas compares to $47 for Russian ally Belarus, and $110 for Latvia, Lithuania and Estonia, all members of the European Union.

The dispute between Russia and Ukraine had underscored the vulnerability of Russia's customers in Europe, sparking debate in capitals across the continent about energy security and supplies.

Though Russia rescinded its demand Sunday for a price hike from Ukraine and restored the flow, several countries were reassessing whether they wanted to continue to be beholden to Russia to meet their energy needs.

"We must not get fully relaxed, since the original reason of conflict between Russia and Ukraine is not resolved yet," said Janos Koka, Hungary's minister of economy and transportation.

He called for alternative energy sources to be explored and for the creation of a strategic storage supply.

The security of the gas supply "needs to be on the forefront of our perspectives," he said.

The company -- which provides a quarter of Western Europe's natural gas needs, 80 percent of which flows through pipelines that cross Ukraine -- said it had planned to continue shipping full supplies to those customers. (Map of gas routes)

But shortly after supplies to Ukraine were halted, other countries began reporting reduced pressure in their pipelines -- some by more than 30 percent. (European customers hit by gas cuts)

Russia responded by accusing Ukraine of stealing gas that was intended for other European countries. Ukraine vigorously denied the charges but said it might have to tap some gas if temperatures fell below freezing.

Russia, Ukraine praise gas deal

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