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The Russian and Ukrainian prime ministers...

Ukrainian President Viktor Yanukovych, who was inaugurated in February, is seeking to revise the long-term gas deal signed by then prime minister Yulia Tymoshenko and Putin in early 2009, which increased the price Ukraine paid for Russian gas, further straining the country"s troubled finances.

In return for cheaper gas, Ukraine could offer Russia a stake in its gas transportation system, which currently carries about 80% of Russian natural gas exports to Europe, and a discount for Russian gas transit to European consumers.

Azarov earlier told the Ukrainian cabinet that he was confident of reaching a deal with Russia on lower prices soon.

Earlier this year, Russia introduced a market gas price for Ukraine, which Kiev says is "unreasonably high." The price is set at $305 per 1,000 cu m (tcm) of Russian gas in the first quarter and $320 in the second. Media earlier reported that Ukraine would like to see the price go down to $260 per tcm.

The Ukrainian government

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