Reuters quoted Ukraine Energy Ministry said Ukraine and Russia will finalise a new gas deal before the end of this month, a message indicating Kiev was likely to secure a long-coveted gas price discount.

It said the deadline was set at a meeting between Ukrainian Energy Minister Yuri Boiko and the head of Russian gas giant Gazprom Mr Alexei Miller in Moscow.

Ukraine, which relies heavily on Russian gas imports and pays about USD 400 per thousand cubic metres, says the price is too high and has been trying to renegotiate the supply contract for over a year.

Price disputes between the two ex-Soviet nations have in the past disrupted Gazprom's supplies to Europe through Ukraine.

Kiev and Moscow announced significant progress after a meeting of presidents Viktor Yanukovich and Dmitry Medvedev in September and have since said they were working on implementing agreements they had reached without providing any details.

The Ukrainian ministry said "The sides have agreed to complete the drafting of agreements reached by the two countries' leadership on expanding cooperation in the gas sector before the end of December 2011."

(Sourced from Reuters)