"Russia and Ukraine have agreed to go over to the European market gas pricing formula beginning from January 1, 2009. I am sure that it will allow us to normalise relations in the gas area in the long term."

The meeting discussed the proposed development of Moscow’s social sector, including support for disabled persons, the local economic situation and migration-policy issues.

"Russian economy is part of the global economy, and all the processes taking place in it have a direct effect on us. Therefore, we need to adjust the budget and macroeconomic figures proceeding from the current realities of the world economy and market as regards prices on major commodities."

"During the talks it has been agreed that Russia and Ukraine are adopting the European price formula in the trade in natural gas."

The Russian Government will provide full funding for research into the use of nanotechnology in the defence sector, Mr Ivanov said when opening the meeting.