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KYIV, Ukraine–Russia and Ukraine have agreed a price for winter gas supplies, officials from both countries said, moving closer to a deal that would ease concerns that the countries” dispute could disrupt supplies to Europe via Ukraine.

Ukrainian President Petro Poroshenko said in a televised interview Saturday that Ukraine had agreed on a price of $385 per 1,000 cubic meters of gas until the end of March.

“Ukraine will have gas, Ukraine will have heating,” he said.

Russian and Ukrainian officials said they hadn’t reached a final agreement. A deal appeared close after a meeting in Berlin three weeks ago, but the agreement on price appears to indicate they are inching toward finalizing a deal.

Russia cut off supplies in June, demanding Ukraine pay a debt that it pegged at some $5 billion, leaving Kyiv running low on supplies with winter approaching.

“It’s premature to say that we’ve reached an agreement. An agreement means [Russian gas company] Gazprom’s and [Ukrainian gas company] Naftogaz’s signatures in place, it means the flow of gas,” Ukrainian Prime Minister Arseniy Yatsenyuk said Sunday.

Stumbling blocks remain, Mr. Poroshenko said, and officials from Ukraine, Russia and the European Union will meet Tuesday try to thrash out final terms. Ukraine, which is in deep recession, lacks the funds to purchase the Russian gas, and is looking to the International Monetary Fund for help, Mr. Poroshenko said.

He said officials from the IMF would visit Ukraine for talks after a new cabinet is formed in mid-November following parliamentary elections next weekend. Ukrainian officials have said the IMF may have to adjust its $17 billion bailout program, as Ukraine’s finances have significantly worsened since the deal was agreed in April.

Deliveries of Russian gas to Europe via Ukraine were severely disrupted twice in the past decade amid disagreements between Kyiv and Moscow. On Thursday, Russian President Vladimir Putin said Russia would reduce gas flows to Europe via Ukraine if Kyiv siphoned off gas destined for Europe for its own needs.

On Friday, Russian Energy Minister Alexander Novak confirmed that progress had been made on reaching a gas deal during talks in Milan.

“We have agreed on the key parameters–on the price for gas supplies in the winter period, on prepayment terms and on the debt repayment schedule,” Mr. Novak said, according to Russian state news agency TASS. “The question now is whether Ukraine has sources to repay the debt and pay for current deliveries.”

Ukraine accused Moscow of setting a high price to punish its moves westward.

Mr. Poroshenko blamed Kyiv’s lack of funds to pay for the gas in part on consumers in eastern parts of the country held by pro-Russia rebels who “didn’t pay a penny” for supplies.

Talks on Friday between Mr. Poroshenko and Mr. Putin, as well as European leaders, yielded little progress toward resolving the monthslong conflict. Scattered fighting has continued despite a cease-fire signed last month. At least six soldiers and civilians were killed and 24 were wounded in the past two days, Ukrainian security officials said.

Write to Nick Shchetko at nick.shchetko@wsj.com

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(END) Dow Jones Newswires

October 19, 2014 21:15 ET (01:15 GMT)

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