KIEV, Jan. 16 - Ukraine moved a step closer to signing a production sharing agreement with Shell on extraction of shale gas after Donetsk local council voted on Wednesday to support the project.

The agreement was originally supposed to be signed by September 2012, but had been delayed due to opposition from local councils amid environmental concerns.

The Donetsk council is the first local council in Ukraine to support such project, an important step before the government can go ahead and sign the agreement with Shell.