Worker operating a gas pipeline system in the town of Boyarka, in Kiev, Ukraine. (Photo: AFP / VNA)

Russian Prime Minister Dmitry Medvedev said that they need to agree on all the essential points of this deal. And then Russia can resume cooperation, including gas supplies to the Ukrainian territory.

In late October, Russian President Vladimir Putin announced that Russia was ready to negotiate on supplying gas to Ukraine at a significantly reduced price, as well as negotiating on the issue of gas transit from Russia through Ukraine to Europe.

Currently most of the Russian gas supplied to Europe is transported through a pipeline on the territory of Ukraine under a 10-year contract. However, this contract will expire on December 31, and without a new contract, a serious disruption of gas supply to Europe in the cold winter season of 2008-2009 is entirely possible to repeat.

The signing of the new contract was troubled by political tensions between Moscow and Kiev, a conflict in Eastern Ukraine and a legal dispute between Russian gas supplier Gazprom and Ukrainian energy company Naftogaz.