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Kiev optimistic about Russian gas deal

KIEV, Ukraine, Oct. 29 (UPI) -- Kiev is optimistic that it can broker a revision to its existing natural gas contract with Russian gas company Gazprom, the Ukrainian prime minister said.

Russian Prime Minister Vladimir Putin paid a working visit to Ukraine this week to discuss the stormy energy relationship between the two countries.

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Gazprom in January 2009 cut gas supplies to Ukraine because of lingering debt and contract issues. Both sides have since discussed merging Gazprom with Ukraine's energy company Naftogaz. Kiev in April secured a 30 percent discount for natural gas in exchange for an extended lease for the Russian Black Sea in Crimea.

Putin after his talks said there were no major breakthroughs though Ukrainian Prime Minister Mykola Azarov said there was reason for optimism regarding a new gas deal.

"There is trust between the leaders, the presidents, between the governments and an understanding that the problem should be solved based on the principles of mutual benefit," he was quoted by Russia's state-run news agency RIA Novosti as saying.

Opposition lawmakers in Kiev are worried the government of pro-Russian President Viktor Yanukovych is moving too close to the Kremlin.

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