Putin said Ukraine could receive Russian gas at existing lower prices until April and then switch to the four-fold increase being demanded by state-controlled gas giant Gazprom.

"I will instruct the government and Gazprom to ensure gas deliveries in the first quarter of 2006, with the conditions and rates of 2005. The condition is that before the end of today, the Ukrainian partners sign the contract with Gazprom's offer for switching to market prices in the second quarter."