The Russian and Ukrainian governments approved on Friday new gas agreements reached by gas monopoly Gazprom and its Ukrainian partners, the Russian government press service said, according to RIA Novosti.

It said the agreements are based on Ukrainian President Viktor Yanukovych's proposals and establish a new pricing structure.

"The price agreements are to be formalized through a special government resolution. Prime Minister Vladimir Putin has issued instructions that a draft resolution be prepared shortly," a spokesperson said.

Russian President Dmitry Medvedev said earlier in the day he would meet with Yanukovych next week to discuss bilateral cooperation, particularly in the gas sector.

Medvedev told journalists that Ukraine considered the current gas prices too high and that Russia was willing to compromise.

Ukrainian First Deputy Prime Minister Andriy Klyuyev said on Thursday the Ukrainian economy was able to cope with high gas prices last year due to a 20% discount offered by Russia and large gas reserves in its underground storage facilities. The discount expired at the end of 2009 and the deputy prime minister said the current gas prices were potentially ruinous for the national economy.


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