Gazprom, Russia's state gas- export monopoly and NAK Naftogaz Ukrainy resumed natural-gas flows to Europe on Monday.

Gazprom and Ukrainian gas supplier Naftogaz put pen to paper on a 10-year agreement to provide Russian gas for the Ukrainian market and said all disagreements on transit to the EU had been resolved.

Tymoshenko indicated that the price for gas for Ukraine would be based on the European formula and it would be different during the year, but on average Ukraine would pay 230 dollars per 1,000 cubic metres.

Gazprom wants Ukraine to pay $360 per 1,000 cubic meters in the first quarter, equivalent to a 20 percent discount to the $450 that Europe pays, said Gazprom spokesman Sergei Kupriyanov said by telephone to the Associated Press.

Russia and Ukraine had agreed on gas prices, he said, while declining to comment further.

The had been scheduled to begin flowing today at 10:a.m. Moscow time.

Energy Russia Ukraine