Gazprom agrees on final Ukraine gas supply terms

Russia's gas export monopoly Gazprom has reached a final gas agreement with Ukraine's state energy firm Naftogas after two days of talks in Moscow, the Russian firm said yesterday.

Gazprom said it will sell Ukraine gas it imports from Central Asia at a price of $179.5 per 1,000 cubic metres until the end of the year.

Russian gas, including the volumes already supplied in January-February, would cost $315 per 1,000 cubic metres, but Ukraine will be allowed to pay for it by returning volumes from its underground storage.

It was not clear from the statement whether the two sides agreed to keep or remove intermediaries in the gas trade.

Gazprom said it would be able to directly supply Ukraine's industrial consumers with no less than 7.5 billion cubic metres of gas per year - less than analysts had anticipated. Gazprom said talks on the terms of supplies in 2009 will continue.