MOSCOW, Jan. 18 (Xinhua) -- Russia will sign a new gas deal with Ukraine on Monday to settle their gas dispute and resume gas supplies to Ukraine and European countries, local media reported on Sunday.

    "In line with agreements between the Russian and Ukrainian prime ministers, Gazprom and Naftogaz Ukrainy are preparing documents on gas supplies to Ukrainian consumers and gas transit via the Ukrainian territory for signing," said Gazprom spokesman Sergei Kupriyanov.

    "We are working to ensure that the documents are signed on Monday," said the representative of the Russian state-owned gas monopoly.

Russia's Prime Minister Vladimir Putin (R) and his Ukrainian counterpart Yulia Tymoshenko speak to reporters after talks in Moscow early January 18, 2009.

    Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko were expected to attend the signing ceremony, Interfax said.

    Putin and Tymoshenko announced a deal on early Sunday to resolve the gas dispute that has left millions of Europeans without heating in the depths of winter for more than a week.

    Under the new deal, Russia would sell Ukraine gas at a price "based on the European price formula" but would offer a 20-percentdiscount for 2009. In return, Ukraine agreed not to raise its transit fee for Russian gas to Europe.

    Russia cut off gas supplies via Ukraine to Europe on Jan. 7, one week after it halted gas supplies to Ukraine due to failed talks on pricing and terms of fees.