Yanukovych was speaking at a joint press conference today with Russian Prime Minister Mikhail Fradkov, who was in Kyiv to take part in a meeting of the Russian and Ukrainian governments' committee on economic cooperation.
UkrGasEnergo, a joint venture, and RosUkrEnergo, the intermediary company set up to supply Ukraine with Russian gas, confirmed the agreement.
Yanukovych said that the volume of gas supplied to Ukraine in 2007 is expected to be at least 55 billion cubic meters.
Ukraine currently pays $95 per 1,000 cubic meters, but Russia's Gazprom had threatened to raise prices even higher than the $130 agreed upon today.
Fradkov said gas contracts were an "important, but not the sole" component of Russian-Ukrainian economic cooperation.
Fradkov also called for the two countries to "synchronize" their bids to join the World Trade Organization (WTO).
Fradkov was expected to meet also with Ukrainian President Viktor Yushchenko.
WTO Status Of RFE/RL Broadcast Countries
An exhibition of the history of the WTO in Singapore in 1996 (courtesy photo)
Armenia: Joined on 5 February 2003.
Croatia: Joined on 30 November 2000.
Georgia: Joined on 14 June 2000.
Kyrgyzstan: Joined on 20 December 1998.
Macedonia: Joined on 4 April 2003.
Moldova: Joined on 26 July 2001.
Romania: Joined on 1 January 1995.
Countries That Are Not Yet WTO Members:
Afghanistan: Submitted its application in November 2004.
Azerbaijan: Submitted its application in June 1997.
Bosnia-Herezgovina: Submitted its application in May 1999.
Belarus: Submitted its application in September 1993.
Iran: Submitted its application in July 1996.
Iraq: Submitted its application in September 2004.
Kazakhstan: Submitted its application in January 1996.
Russia: Submitted its application in June 1993.
Serbia and Montenegro: Submitted separate applications in December 2004.
Tajikistan: Submitted its application in May 2001.
Ukraine: Submitted its application in November 1993.
Uzbekistan: Submitted its application in December 1994.
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For an exclusive RFE/RL interview with former WTO head MICHAEL MOORE,click here.