Russia, Ukraine sign landmark deal

An agreement between Kiev and Moscow gives Russia prolonged access to naval bases in n the Crimea peninsula in the Black Sea and offers Ukraine a discount on Russian gas.

The landmark deal came on Wednesday as visiting Russian President Dmitry Medvedev in a meeting with his Ukrainian counterpart Victor Yanukovich in northeastern city of Kharkiv agreed to offer Kiev Russian gas at a discount.

“Our Ukrainian partners will receive a discount on the gas price which will amount to USD 100 if the price (per 1,000 cubic meters) exceeds USD 330 or if the price is lower will amount to 30 percent,” AFP quoted Medvedev as saying.

Medvedev also made clear that the two agreements on gas and the Black Sea fleet were linked.

“The gas discount will be considered as part of the rent for the presence of our military base in Sevastopol,” he said.

For his part, Yanukovich described the gas deal with Moscow as “unprecedented.”