Ukraine Says Russian Gas Deal Close

President of Ukraine Viktor Yanukovich has said that the completion of a contentious and complex gas deal with Russia is nearing completion.

"We are very close to resolving this issue, (but) this process has not been concluded yet," he is reported as saying.

Earlier this week, Russia dismissed media reports that a gas deal had been reached with Ukraine already. 

"The negotiations are continuing," a spokesman for Prime Minister Vladimir Putin said. "Until that happens, we consider it premature to say anything."

Ukraine signed a ten year gas deal with Russia in 2009, but were forced to opt for an early review this year. Ukraine has been negotiating to bring the agreed price of Russian gas supply to the country down since negotiations began.

High gas prices are already having a negative effect on the country's ability to pay for gas supplies. The country has come under pressure from the International Monetary Fund (IMF) to raise the price of gas to households in the Ukraine, before the country can avail of an IMF loan. Ukrainian state-company Naftogaz Ukrainy currently operates at a loss on its domestic natural gas supply.

Earlier this month, it was revealed that Ukraine had opted to take a $550 million credit from Russian company Gazprom's subsidiary Gazprombank to pay for gas imports.