A global recession has changed, among other international dynamics, a greater willingness for the Ukraine to cooperate with a former mother-nation that recently sought to fine them $2 billion dollars in what can be described as a reprimanding for favoring EU cooperation, and a mere few years ago shut off gas to nearby Belarus, threatening energy stability throughout the post-Soviet states.

Today, Ukrainian Prime Minister Yulia Tymoshenko promised Russia a role in the upgrading of its aged pipeline system after Moscow agreed to let its neighbor off from penalties for taking less gas than agreed.

Tymoshenko met with Russian counterpart Vladimir Putin in their first face-to-face session since a January dispute over gas payments caused another huge disruption to gas supplies across Europe.

“We consider Russia as partners in the reconstruction and modernization of the Ukrainian gas pipeline system,” Tymoshenko told reporters after meetings that lasted several hours. “We have invited Russia as a major partner to take part in the reconstruction of the Ukrainian pipeline system.”

Her comments signal an effort to appease Russia after Moscow, as previously stated, reacted furiously to Ukraine’s agreement with the EU last month, inviting millions of euros of investment to upgrade Ukraine’s sprawling pipeline network without consulting Russia.

Gazprom, the Russian natural gas monopoly, has subsequently noted that it will  waive a $2 billion fine it could have imposed on Ukraine for purchasing less gas than required by contract, Putin added Wednesday.

However, to reference the apparent misdeeds of the Ukraine for their willingness to integrate energy initiatives with the EU without consulting ‘mother’, Putin made sure to state that any modernization without Russia’s participation would again endanger the security of gas supplies to Europe.

The agreement wasn’t necessarily going to be this way. However, with the Ukraine in default, engulfed by social protests and political chaos, there was little choice to be made. It was the first country to ask the IMF for a bail-out, its currency was in free fall, and its economy is contracting at an annual rate of 9%. 

Upcoming events will alter the significance of today’s handshake. The IMF’s board is scheduled to discuss Ukraine’s first performance review under the country’s IMF loan agreement on May 13. Once the board approves the review, Ukraine will be able to immediately draw down the next loan tranche of $2.8 billion. President of Ukraine Viktor Yushchenko has left for Hungary for an official visit. There, the president will sign bilateral agreement on cooperation in the agricultural sphere between Ministry of Agrarian Policy of Ukraine and Hungary’s Ministry of Agriculture and Rural Development. Hungary furthermore intends to support policy directed at Ukraine’s integration to Europe, an integration which sooner or later will be challenged vociferously by the Kremlin, with or without Putin behind the helm.

For now, its certainly an agreement of mutual benefit, and a photo opportunity for the prime ministers of both nations to show cooperation in international energy strategies. When the dust of the economic recession settles and geopolitical players look to claim their mark on a new multi-polar world, let it be known that this handshake is temporary and energy stability within the post-Soviet states may again be at risk.