INSTANT VIEW: Russia and Ukraine sign deal on gas flows

MOSCOW/KIEV (Reuters) - Russia and Ukraine signed a deal on Monday for a second time to help secure the resumption of Russian gas supplies to Europe, cut off for nearly a week in freezing temperatures.

Russia has accused Ukraine of siphoning off gas to make up for losses it has suffered since Moscow turned off the tap on January 1 in a dispute over gas prices. Ukraine denies the charge.

COMMENTARY:

NEIL SHEARING, EMERGING MARKETS ECONOMIST, CAPITAL ECONOMICS

LTD, LONDON:

"In the near term, Russia didn't stand to lose much. The concerns from the Russian perspective are more about the medium term and how it is perceived as a secure and stable supplier of energy to the West."

"Ukraine was going to have a painful recession no matter what happened ... The only lasting solution is that Ukraine essentially has to pay a market price."

"If this is just an agreement to send Russian gas to Europe via Ukraine, it makes little difference to Ukraine. The big thing is what price is it going to have to pay for its imports?"

BULGARIAN PRIME MINISTER SERGEI STANISHEV IN PARLIAMENT:

"It must be clear that after the transit is restarted ... the crisis cannot be considered solved because the bilateral relations between Ukraine and Russia are not sorted out and the difference remains extremely deep."

"That is why we insist on the urgent implementation of alternative projects (to deliver gas to Europe)."

RONALD SMITH, CHIEF STRATEGIST AT ALFA BANK:

"This is almost a complete climb down by Ukraine. Russia gets what it wants -- highly lucrative gas exports to Europe start again at 8 a.m. (Central European time) tomorrow, the European monitors are in place and Ukraine gets no gas."

"Ukraine has given up its only bargaining chip, the ability to shut off the gas ... They (the Russians) have handled the PR job very well."

"Ukraine will have to pay market prices for their gas. The only bargaining chip they have is that of somebody who can't pay."

VALERY NESTEROV, ANALYST AT TROIKA DIALOG BROKERAGE