KIEV, Nov. 9 – Gazprom CEO Alexei Miller met President Viktor Yanukovych on Wednesday in Kiev for “intensive” talks as Ukraine seeks lower natural gas prices, while Russia seeks control over Ukrainian gas pipelines, Gazprom reported.

The Yanukovych administration did not report on the meeting.

“The parties expressed satisfaction with the current negotiation process,” Gazprom said in a statement. “The work is carried out in an intensive way as a number of complicated issues have been reviewed.”

The talks, which where in a deadlock for more than 18 months, intensified after September 24 meeting between Yanukovych and Russian President Dmitry Medvedev near Moscow.

Ukraine has never publically commented on details of the latest talks, but people familiar with the issue said the parties may be discussing a joint venture that would give Gazprom access over a stake in Ukraine’s natural gas transportation operation.

Prime Minister Mykola Azarov said last month that the deal over lower gas prices is not supposed to lead to Ukraine joining the Customs Union, a trade bloc led by Moscow.

Russia has earlier said that joining the Customs Union, a move that would stop Ukraine’s integration with the European Union, is one of two potential ways of lowering gas prices for Ukraine.

The other would be acquisition of Ukraine’s natural gas transportation system.

Azarov said the deal with Russia will be reached by the end of November, almost a month later than had been previously thought, and will contain a broad package of agreements.

“This is a big package that will define the entire spectrum of our relations,” Azarov told Ekho Moskvy last month.

For Ukraine it is crucial to have the agreement with Russia on lowering gas prices in order to be able to qualify for resumption of $15.2 billion loan from the International Monetary Fund.

The IMF has demanded the Ukrainian government to dramatically increase gas prices for households, a measure that would be highly unpopular ahead of the October 2012 general elections.

The government has focused on trying to negotiate lower gas prices in talks with Russia in order to keep the gas household prices unchanged.

The price of gas that Ukraine pays Russia’s Gazprom increased to about $400.5 per 1,000 cu m in the Q4, compared with $355/1,000 cu m in Q3, $297/1,000 cu m in Q2 and $263/1,000 cu m in Q1.

Azarov has repeatedly said a fair price for Ukraine - which is situated closer to the Russian border and buys more gas than any other European country – must be just above $200/1,000 cu m.

Ukraine and Russia first reported breakthrough in the gas talks after a meeting between President Viktor Yanukovych and Russian President Dmitry Medvedev in Zavidovo near Moscow on September 24.

Yanukovych apparently suggested creating a trilateral joint venture to operate Ukraine’s massive natural gas pipeline system. The JV would include entities from Russia, Ukraine and the European Union, according to a person at the Yanukovych administration familiar with the situation.

But Russia has been sought to create a bilateral joint venture, involving Ukraine and Russia, according to a source at Russian gas company Gazprom.

Yanukovych and Medvedev again met on October 18 in Donetsk, Ukraine, after which Yanukovych had said the agreement may be announced “very soon.” (sb/ez)