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Ukraine plans to conclude gas supply talks with Russia next week

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KIEV, October 31 (RIA Novosti) - Ukraine's prime minister, Viktor Yanukovych, told the fuel and energy minister on Wednesday to complete talks with Russia on 2008 gas supplies by the end of next week.

"I am asking Yuriy Boiko to finish the talks shortly, within the next seven to 10 days," Yanukovych told a Cabinet session.

The prime minister said the price for Russian natural gas next year should not exceed $150-$160 per 1,000 cubic meters, echoing President Viktor Yushchenko's earlier remarks.

Ukraine currently pays $130 per 1,000 cubic meters for gas pumped from and via Russia. Media reports have suggested that in 2008 the price could appreciate to $180.

Yulia Tymoshenko, a former prime minister, is likely to soon replace Yanukovych and form a new government after the pro-Western coalition won snap parliamentary elections last month. The country's parliament, the Supreme Rada, resumes work in November.

Moscow's relations with Kiev saw a downturn during Tymoshenko's brief term as prime minister in 2005, and analysts have suggested the Kremlin could use gas as a bargaining chip in potential political disputes with Ukraine's new government.

Russia's state-controlled gas monopoly Gazprom demanded Ukraine pay off its gas debt and threatened to cut supplies on October 2, just a few days after the elections. The deal was reached in a week, but it revived memories of a bitter pricing row between Moscow and Kiev in early 2006, which affected gas transits to Europe.

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