Ukraine and Russia appear to have reached a solution concerning a 900 million euro unpaid gas bill.
Ukraine, mired in political uncertainty, has promised to pay the debt by the end of next month. In return Russia has said it will not turn off the tap or restrict supplies.
Before threatening Ukraine with gas cuts, the Russian government informed the EU of the situation, given much of its gas exports to Europe pass through Ukraine.
The EU said it was encouraged that Russia had alerted Brussels to the situation before taking any action.
Ukraine and Russia have been in this situation before in early 2006, causing supply problems for Europe and forcing the Union to reconsider its reliance on gas from eastern Europe.