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Gazprom and Ukraine on Wednesday stepped back from the brink of a damaging gas row that threatened supplies to Europe after Russia's state-controlled gas giant agreed to resume shipments to Kiev in full.

The agreement looked to be a ceasefire in an energy standoff over debts and contracts that was damaging Gazprom's reputation as a reliable supplier of gas to Europe after it halved gas shipments to Ukraine.

Vladimir Putin, the Russian president, and Mr Yushchenko on Wednesday intervened to help produce the agreement just hours after Gazprom said Ukraine was starting to reduce shipments to Europe to compensate for enormous shortfalls on the domestic market.

Financial Times- March 5th 2008.

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