MOSCOW, Oct. 3 (UPI) -- Russian and Ukrainian officials set the groundwork for draft agreements on gas shipments and a gas price mechanism, officials said.
Gazprom and Naftogaz Ukrainy will develop a draft agreement on a mechanism for Ukraine to pay market prices for natural gas from Russia, the business daily Kommersant said Friday.
Russian Prime Minister Vladimir Putin met in Moscow with Ukrainian Premier Yulia Tymoshenko to discuss the draft on gas cooperation terms.
Gazprom and Naftogaz will coordinate on gas exports to Europe as part of the arrangement. A second consideration was given to transitioning Ukraine to a market-based price scenario, which may prove beneficial to Ukraine, considering declining energy prices.
A growing row between Tymoshenko and Ukrainian President Viktor Yushchenko underlines the geopolitical significance of the energy sector in the region. Yushchenko had moved to direct the flow of oil through the Odessa-Brody pipeline from Russia, while Tymoshenko in July opposed the measure.
Tymoshenko faced allegations in August that she had negotiated a secret deal with Russia to take the Ukrainian presidency.
