Moscow, April 1 (IANS/TASS): Russian President Vladimir Putin on Tuesday supported the proposal to extend the gas price discount for Ukraine by three months from April 1.

Russian Prime Minister Dmitry Medvedev said after a meeting with Putin that the government deemed it necessary to grant the request from Ukraine and Russian gas giant Gazprom for extending the gas price discount.

However, the request was granted on the condition that Kiev complied with all the terms of Russian natural gas supplies, "including the repayment of those debts that have accumulated".

"Let's do this," Putin was quoted as saying.

Medvedev said that the government had received Gazprom's proposal on extending the gas price discount for Ukraine for the next quarter until July 1.

"We proceed from the fact that the Ukrainian economy is currently in a quite difficult position and even though such a decision implies not quite favourable consequences for our budget as well -- I mean the cancellation of a part of the export duty -- we consider it possible to support the request by Gazprom and the corresponding request by the Ukrainian side," Medvedev said, explaining the rationale behind the government's decision.

Putin said that the gas price was based on the oil price formula, and world oil markets were very volatile at present.

"Considering this, we need to see in three months what is going on in this sphere and make additional decisions," Putin said.

Gazprom CEO Alexey Miller said earlier that the Russian gas giant had turned to the government with a request to extend the gas price discount for Ukraine for another three months.

The option of a gas price discount is stipulated in the existing gas contract between Gazprom and Ukraine's national energy company Naftogaz.

Russia granted Ukraine a discount in October 2014 for a term of five months. The discount expires on April 1.

Russian Energy Minister Alexander Novak had said earlier "the price of gas for Ukraine will total $348 per 1,000 cubic metres from April 1".

He had added that the Russian government would consider the issue of a gas price discount for Kiev for the second quarter before April 1, if it received a corresponding request from Ukraine.

Based on the current price of Russian natural gas supplies to Ukraine, the discount may amount to $100 per 1,000 cubic metres.

Therefore, the gas price for Ukraine will be about $250 per 1,000 cubic metres from April.