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By Gleb Bryanski

MURMANSK, Russia, April 17 (Reuters) – Russia said on Saturday it was considering cutting the price of gas for Ukraine in exchange for participation in the country’s energy sector.

Ukraine and Russia are due to resume talks on gas supplies on April 20, a day before Russian President Dmitry Medvedev meets his Ukrainian counterpart Viktor Yanukovich in Kiev.

A deal should pave the way for Kiev to agree its 2010 budget and secure more finance from the IMF for the cash-strapped ex-Soviet republic.

‘One of the questions we are indeed discussing is a price discount,’ Russian Deputy Prime Minister Igor Sechin told reporters.

‘The Ukrainian side proposes an exchange. We have many interests particularly in the energy sector – in particular hydro generation, nuclear industry and many others.’

The Russian government said on Friday it had agreed with Kiev to approve agreements reached by Russian state-run gas export monopoly Gazprom and its Ukrainian partners but gave no details.

Russia may lend $5-6 billion to Ukraine to construct two nuclear reactors.

Kiev has already signalled its readiness to change legislation that forbids the privatisation of its pipelines, which would allow Russia and the European Union to co-manage and upgrade the outdated system.

Elected president in February, Yanukovich has moved swiftly to repair ties with Moscow strained since the 2004 pro-Western Orange Revolution. He says the 10-year gas supply deal signed in January 2009 exacts an unfair price from his country.

Ukraine paid $305 per 1,000 cubic metres in the first quarter and wants its total annual gas bill to be lowered by $4 billion with an average price of $240-260 per 1,000 cubic metres for 2010.

‘We are preparing the decision,’ Sechin said. ‘The parameters are under final discussion now,’ he said, adding that the final decision could be taken on Tuesday with the visit to Moscow of Ukrainian Fuel and Energy Minister Yuri Boiko.

(Writing by Dmitry Sergeyev; Editing by Toby Chopra) Keywords: RUSSIA UKRAINE/GAS

(dmitry.sergeev@reuters.com; +7 495 775 1242; Reuters Messaging: dmitry.sergeev.reuters.com@reuters.net)

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