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MOSCOW, January 18 (RIA Novosti) - Russian...

The prime ministers of Russia and Ukraine said early on Sunday they had reached a deal that would make it possible to restart gas supplies to Europe. The premiers instructed Gazprom and Naftogaz to prepare and sign a formal agreement.

"Gazprom and Naftogaz are currently preparing contracts for signing on gas supply to Ukrainian consumers and corresponding agreements on gas transit. The main result is the agreement on the resumption of Russian gas transit by Ukraine through its territory and the agreement on the terms of work this year and next year," Kupriyanov said.

Russian Prime Minister Vladimir Putin said after the talks with his Ukrainian counterpart Yulia Tymoshenko that Ukraine will pay the European price for Russian natural gas with a 20% 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 pries

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