The presidents of Russia and Ukraine will on Wednesday discuss natural gas issues, the conditions for the Russian Navy's stay in the Crimea and border cooperation, the Kremlin said Wednesday.
During a meeting between Russian President Dmitry Medvedev and Ukrainian President Viktor Yanukovych in the east Ukrainian city of Kharkov, 30 km (19 miles) from the Russian border, the heads of state will discuss "problems of interaction in the gas sphere in the context of Russian gas supplies to Ukraine and its transit to European consumers," the Kremlin said.
Russian business daily Vedomosti earlier reported that Russia agreed on lower gas prices for Ukraine following a proposal from the country's new leader Yanukovych, inaugurated in February.
During his election campaign Yanukovych vowed to improve relations with Russia and renegotiate the January 2009 deal on gas supplies, which increased the price Ukraine paid for Russian gas, straining the country's troubled finances.
Ukraine reportedly requested Russia to lower the gas price to $250 or at least $260 per 1,000 cu m. The ex-Soviet republic currently purchases Russian natural gas at the average annual price of $337 per 1,000 cu m. The gas price equaled $305 per 1,000 cu m in the first quarter.
In return for cheaper gas, Ukraine could offer Russia a stake in its gas transportation system, which currently carries about 80% of Russian natural gas exports to Europe, and a discount for Russian gas transit to European consumers.
The Kremlin also said: "Another issue important to both sides is the creation of conditions for the operation of Russia's Black Sea Fleet in Ukraine."
During his meeting with Medvedev on March 5, Yanukovych pledged to steer a more balanced policy towards Russia and to continue discussions on the future of the Black Sea Fleet bases in Ukraine's Crimea, which his predecessor Viktor Yushchenko was reluctant to do.
Russia's Black Sea Fleet uses a range of naval facilities in the Crimea, including its main base in Sevastopol, as part of a 1997 agreement under which Ukraine agreed to lease the bases to Russia until 2017.
