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Ukraine"s new president, Viktor Yanukovych...

on Thursday that both leaders were expected to discuss the status of the Black Sea Fleet base, due to be closed by 2017, and a sensitive issue of borderline in the Kerch Strait - the scene of several diplomatic conflicts in the past.

The source also said Medvedev and Yanukovych would discuss European issues and preparations for the anniversary of victory over Nazi Germany in World War II, but made no mention of energy talks.

In an interview with the BBC Ukrainian Service earlier this week, Yanukovych said the price of natural gas supplied to Ukraine by Russia must be fair for Kiev, and the issue should be discussed in a broader context involving Ukraine"s access to Russian and Central Asian gas deposits and the creation of a gas transportation consortium to modernize and manage the Ukrainian gas pipeline network.

Yanukovych said Ukraine wanted to be a full-fledged partner in all gas issues with both Russia and the European Union.

Russia and Ukraine

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