SEVASTOPOL, May 16 - The average annual price of Russian natural gas procured by Ukraine's national oil and gas company Naftogaz Ukrayiny will be $440 per 1,000 cubic meters this year, up from the current $425, Naftogaz CEO Yevhen Bakulin said at a ceremony marking the commissioning of the modern self-elevating floating drilling rig (SEFDR) Petro Hodovanets on Wednesday.

"This year, we plan to buy 27 billion cubic meters (bcm) of gas at an average annual price of $440 per 1,000 cu m," he said.

Each month, Ukraine shells out around $1 billion for imported Russian gas, which greatly surpasses the price of the acquired modern SEFDR, with the help of which Naftogaz counts on significantly expanding Ukrainian gas production, Bakulin said.