The Gas War Grinds On.

President Yuschenko held a phone conversation with his Russian counterpart Vladimir Putin yesterday following a week that has given no hope of an end to Ukraine’s ongoing gas negotiations with Russia. On Tuesday, Prime Minister Yurii Yekhanurov announced that Russia had agreed to Ukraine’s demands for a compromise that would see gas prices rise to European levels gradually over the next few years, however, later in the day top officials from Gazprom denied any such agreement had been reached, adding that they had made their final offer.  Ukraine has said that it is ready to take the dispute to an arbitration court in Stockholm. Adding an interesting twist to the conflict, former Prime Minister Yulia Tymoshenko announced that she was ready to personally resolve the debate. Concorde Capital:  Several media sources have noted that Tymoshenko’s willingness to ride in on a white horse and save the day, came only a day after Russia closed a criminal case against her.  The conflict has made for good reading in the media but it is important to remember that negotiations like this between Russia and Ukraine are not uncommon. Yushchenko said he expected the conflict to be solved before the New Year and pointed out that in the past gas contracts have been signed just minutes before the deadline.