Russia and the European Union (EU) on Saturday took a step towards the resumption of Russian gas supplies to Europe as the two sides signed a protocol to set up an international commission to monitor Russian gas transit via Ukraine.

The agreement, which has yet to be signed by Ukraine to come into force, was endorsed by Russian Deputy Prime Minister Igor Sechin, Russian gas monopoly Gazprom's CEO Alexei Miller and Czech Industry and Trade Minister Martin Riman.

Russian Prime Minister Vladimir Putin (R) shakes hands with Czech Republic's Prime Minister Mirek Topolanek in Novo Ogaryovo outside Moscow January 10, 2009. [Xinhua/Reuters]

Russian and EU officials approved the deal following Saturday's meeting between Russian Prime Minister Vladimir Putin and his Czech counterpart Mirek Topolanek, whose country currently holds the rotating EU presidency.

Under the agreement, the international commission will include representatives of Gazprom, Ukraine's energy giant Naftogaz, Russian and Ukrainian energy ministries, the European Commission, European companies receiving the Russian gas, and international monitoring organizations.

At a press conference after talks with Topolanek, Putin expressed the hope that Ukraine will sign the deal on Saturday. "I assume that this agreement will be signed in Kiev and I see no grounds for not doing so," he said.

The Russian prime minister reiterated that gas shipments to Europe will resume as soon as the observers get down to work.

"We will do this immediately after international monitors take charge of entry and exit points on the border between Ukraine and Russia as well as on Ukraine's border with other European countries," he was quoted as saying by the RIA Novosti news agency.

He said Russia will also monitor the amount of gas supplied to Ukraine and received by European consumers, warning that supplies may again be reduced in the event of theft.

With some 80 percent of its gas exports to the EU passing Ukraine, Moscow accused Kiev of stealing the transit gas after Russia cut off all gas supplies to Ukraine on Jan. 1 over a pricing dispute. Kiev denied the accusations, saying that Russia was trying to discredit Ukraine as a reliable gas transit partner.

The EU depends on Russia for one-fourth of its gas supply. The complete cutoff of Russian gas supplies to the EU since Wednesday has left thousands of European families without heating at the height of winter.

Topolanek arrived in Kiev on Friday and then flew to Moscow on Saturday with the aim of brokering a deal to end the row. After reaching an agreement with Russia, the Czech leader is expected to meet with Ukraine's leadership in Kiev later Saturday.

Marina Soroka, Ukrainian prime minister's press secretary, confirmed that Topolanek is to bring from Russia the protocol on monitoring Russian gas transit through Ukraine.

Ukrainian Deputy Prime Minister Grygory Nemyrya earlier told reporters he was "hoping" the agreement could be signed on Saturday. "A process is underway, which in our opinion should lead to a compromise," he said.

However, even if supplies restart, it is more likely that the gas will be delivered only to Europe, not Ukraine, because Moscow and Kiev still need to agree on a supply contract for 2009.

Russia has repeatedly said Ukraine must pay market prices for its natural gas. "If the price for gas Gazprom supplies to Eastern European states neighboring Ukraine is around 470 U.S. dollars per1,000 cubic meters in the first quarter of 2009, then Ukraine should also pay the market price for gas," Gazprom spokesman Sergei Kupriyanov said on Friday.

Last year, Russia charged Ukraine 179.50 dollars per 1,000 cubic meters, about half what it charged its European clients.

(Xinhua News Agency January 11, 2009)