Russian and Ukrainian officials have reached an agreement in their dispute over the price of gas.

Under the deal, it appears Russian gas will be mixed with cheaper supplies from Central Asia and Ukraine will buy gas for US 95 US dollar for 1,000 cubic metres.

Russia had switched off the gas supply to Ukraine after Kiev refused to agree a fourfold hike in the price.

The row led to a disruption of imports across Europe, but correspondents say the threat to supplies is now over.

"We have reached a final agreement. It is successful for Gazprom and we are satisfied," the head of Russian energy company Gazprom told reporters.

"This agreement will ensure stable supplies to Europe."

The deal relies on a joint venture set up by Russia and Ukraine called Rosukrenergo, but it remains unclear what form the company will take and how its finances will be structured.

Stealing claims

Delegates from Ukrainian state energy company Naftogaz held talks with Gazprom executives to try to resolve the dispute, which led to several states reporting shortfalls in the gas flow on Monday.

Gazprom stopped exporting gas to Ukraine on Sunday, after Ukraine refused to accept a rise in price from 50 to 230 for 1,000 cubic metres, but left enough in the pipeline for other customers.

Gazprom had accused Kiev of stealing gas intended for Europe.

Kiev denied any wrongdoing and said it was being punished for its attempts to become more independent from Moscow and develop stronger ties with the West.

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