Russian energy giant OAO Gazprom said that it was preparing documents on gas supplies which would be signed on Monday.

In line with agreements between the Russian and Ukrainian prime ministers, Gazprom and Naftogaz Ukrainy are preparing documents on gas supplies to Ukrainian consumers and gas transit via the Ukrainian territory for signing, said Gazprom spokesman Sergei Kupriyanov.

We are working to ensure that the documents are signed on Monday, he said.

The Russian and Ukrainian premiers announced early Sunday after intense talks in Moscow that they had reached a deal making it possible to restart gas supplies to Europe. The premiers instructed Gazprom and Naftogaz to prepare and sign a formal agreement.

Putin said after the talks that Ukraine would pay the European price for Russian natural gas with a 20 percent discount this year, while Kiev will not increase the current transit fees it receives for Russian gas.

From 2010, Ukraine will pay the full market price for Russian natural gas while Russia will pay European market prices for transit, Putin said.

Ukraine paid $179.5 per 1,000 cubic meters for Russian natural gas in 2008 which is less than half the price paid by European consumers

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The European price for natural gas in the first quarter of this year stands at about $450 per 1,000 cubic meters but is expected to fall significantly later this year to reflect the decrease in world oil prices.

Tymoshenko said the talks were uneasy. But we had come to mutual understanding, which makes it possible to sign all contract documents.

As soon as the documents are signed, all natural gas deliveries will be restored, Tymoshenko said.

Russia cut off gas supplies via Ukraine to Europe on Jan. 7, one week after it halted gas supplies to Ukraine due to failed talks on pricing and terms of fees.

Following mediation by the EU, the two sides agreed to resume supplies, but deliveries had not restarted, with each side blaming the other over the impasse.

Ukraine Putin Russia Energy