Ukraine, Russia agree on new gas price

KIEV, Nov 16 (Reuters): Ukraine and Russia have agreed the new price of Russian gas supplies, Interfax news agency reported on Wednesday citing a government source, a move that could help Kiev to regain access to a $15 billion International Monetary Fund (IMF) programme. "We expect to sign the documents in the nearest future," it quoted the source as saying. The report did not name the new price. Russian gas giant Gazprom, which sells gas to Ukraine, declined to comment. Ukrainian officials have previously said they expected to conclude gas talks, aimed at significantly reducing the price from the current level of about $400 per thousand cubic metres, by mid-November. Analysts have also expected a deal to be reached eventually. "...We believe that the negative effect (on Gazprom) from potential price concessions for Ukraine has been broadly priced in by the market," Russia's Alfa Bank said in a note on Wednesday. The Kiev government hopes a lower Russian gas price will allow it to cut its budget deficit without raising gas and heating prices for households, something the IMF has insisted should happen.