Gazprom announced on Tuesday that Moscow and Kiev had agreed that as of January 1, 2008, the price of gas sold on the Russian-Ukrainian border would be set at $179.5 per 1,000 cubic meters, up from the current $130.
Tuesday's agreement was signed by the CEO of Russian state-controlled gas monopoly Alexei Miller and Ukrainian Fuel and Energy Minister Yuriy Boiko.
"Contracts for gas supplies to Ukraine in 2008 were signed today," Miller told journalists on Wednesday.
"We have reached agreement on the gas price for Ukraine and on gas transit conditions, which offer additional guarantees of uninterrupted supplies to European consumers and are a logical, mutually beneficial step toward transparent market relations in the gas sphere between Russia and Ukraine," the CEO said.
Ukraine's acting prime minister Viktor Yanukovich said: "I will tell you honestly, I am not satisfied with the decision. Moreover, I have not discussed the issue with Russia's prime minister [Viktor Zubkov]."
"Today we received what was an unpredictable result. We understand that there must be a price rise, but not to such an extent," he said.
The acting premier said he would hold a meeting with President Viktor Yushchenko in the near future, and if necessary with the Russian leadership, and that the Ukrainian government would then reach a decision on whether to hold further talks on the gas price.
Gazprom also said on Tuesday that the parties had agreed that gas transit fees would be set at $1.7 per 1,000 cubic meters per 100 km in 2008 both for Russia and Ukraine.
Kiev earlier said it considered $150-160 per 1,000 cubic meters to be an optimal price.
