KIEV, Dec. 10 - Ukraine will increase shipments of Russian natural gas to Europe 3.4% in 2008, helping the country to raise extra cash to compensate for Russia’s steep gas price hike next year, Naftogaz Ukrayiny, the national oil and gas company, reported Monday.

Naftogaz, which operates the country’s gas pipelines, said Russia is expected to boost the shipments to Europe to 113.7 billion cubic meters of gas in 2008, up from 110 billion cu m expected to be moved in 2007.