The Russian energy giant has agreed to settle its longrunning dispute with Ukraine over transit fees. A new five-year Moscow-Kyiv gas deal will also reduce European concerns over the loss of access to Russian fuel.

Russia and Ukraine have agreed to continue to send gas through Ukraine to Europe for a further five years.

The new deal outlined by Moscow and Kyiv on Saturday eases concerns over whether Europe could lose access to a large portion of Russian gas, which the region depends on to fuel industry and heating, according to DW.

Russia sends roughly 40% of its gas deliveries destined for Europe through Ukraine.

The new five-year gas deal also includes the option to extend the agreement by an additional 10 years, according to the Ukrainian energy minister, Oleksiy Orzhel.