KIEV, Jan. 23 - The government at a meeting on Wednesday approved a production sharing agreement with Royal Dutch Shell to allow the oil major tap vast shale gas deposits in the country.

The approval is the final step before the government officially signs the PSA with Shell at a ceremony, which is expected to take place in Davos on Thursday.

Energy and Coal Industry Minister Eduard Stavytskiy is expected to sign the PSA on behalf of the government, according to a resolution approved by the government.