Russian energy monopoly Gazprom agreed to waive fines on Ukraine for its failure to meet its obligated gas purchases under its current contract. Ukrainian Prime Minister Yulia Tymoshenko met with her Russian counterpart Vladimir Putin on April 29, pledging cooperation on energy.

Tymoshenko offered her thanks to Putin for taking the current economic recession into account when considering the fines as the Ukrainian economy suffers under the global market downfall. “I would like to thank (Russia) for its understanding,” Tymoshenko was quoted as saying by the press. “Today, we are taking as much (gas) as we can afford during the crisis.”

Putin, for his part, agreed, saying it was important to move ahead as the economy limps along. “We understand Ukraine,” Putin said. “Ukraine’s economic conditions have seen better times.” The European Union came forward in the wake of the January row, offering Ukraine economic incentives to upgrade its Soviet-era pipeline network. Moscow complained of being left out of a deal between Kiev and the EU on upgrading Ukraine’s ageing pipelines.

Putin humoured that deal, however, saying Ukraine could always go to the EU for more loans to pay any debt to Gazprom, the Moscow Times reported. “Go to Brussels, get USD five billion and pay Gazprom,” he said. “That will be it. The whole problem is worth nothing.” Tymoshenko said her country had asked Russia to help upgrade its gas transit system.

“We have invited Russia as one of the main partners to modernise the Ukrainian gas transportation system,” Tymoshenko said at a joint press conference with Putin. Putin said Moscow deserved a role in upgrading Ukraine’s pipeline network, which handles the majority of Russian natural gas exports to Europe. “We are not seeking to manage, but we are the main and only supplier to the Ukrainian pipeline system,” he said.

Tymoshenko also offered Ukraine’s help in setting up an international centre for uranium enrichment, a project led by Kazakhstan and Russia with the aim of supplying third countries with enriched uranium for civilian nuclear power.

Following the talks with Putin, Tymoshenko said Ukraine would by July 15 prepare a long-term contract with Russia on nuclear energy cooperation. Putin and Tymoshenko were initially due to meet in early April, but Russia postponed the visit after the Ukraine-EU deal on gas infrastructure cooperation sparked an angry reaction from Moscow. The talks between Tymoshenko were calm, “businesslike and open,” signaling an end at least for now in the tension between Moscow and Kiev.