Ukraine to Pay $227 in Fouth Quarter for Russian Gas With Discount

Russia and Ukraine agreed a 10-year gas deal in 2009 after a price war lead to Russian supply cuts to Ukraine and lower volumes for Europe. The European Union has brokered negotiations between the two sides amid strains over the conflict in eastern Ukraine.

High-level talks in Brussels between Russian Federation, Ukraine and the European Commission are expected to clinch a deal late on Friday to secure winter gas supplies for Ukraine.

The Ukrainian government statement also forbade Ukrainian state companies from using Russian software, particularly from the Russian anti-virus giant Kaspersky Lab.

Moscow in July halted gas flows to Ukraine, through which pass around half of Russian gas exports to Europe, after Russian gas pipeline producer Gazprom said Kiev had failed to make prepayments for future supplies. Moscow and Kiev have clashed in the past over energy prices and unpaid gas bills.

It had built up 14.9 billion cubic metres (bcm) of gas in underground storage as of September 11 and wants to store 18-19 bcm for winter by mid-October.

Russian Federation and Ukraine have been locked in a standoff over gas since a pro-Western uprising ousted ex-president Viktor Yanukovych and took control of Kyiv past year.

Ukraine announced on Friday it was banning Russian airlines, including Aeroflot, from flying into the country, as part of a wave of sanctions against Russia over its support for separatists in the east.