BRUSSELS, Sept 14: The European Union and Ukraine signed a deal on Thursday paving the way for European financing of oil and gas meters on pipelines across Ukraine's borders, the EU's external relations commissioner said.

Benita Ferrero-Waldner announced the signing of the memorandum of understanding after talks in Brussels with Ukrainian Prime Minister Viktor Yanukovich.

“This is a very concrete cooperation scheme to increase transparency, reliability and safety of supplies to Ukraine, but also transit to the European Union,” she told a news briefing.

The flow of Russian gas through Ukraine to Western Europe was disrupted last January when Moscow cut off supplies to the former Soviet republic in a dispute over pricing. Russia blamed Ukraine for the incident.

On Wednesday, Ukraine won the promise of discussions early next year on broader ties with the European Union, that could include a free trade deal, dependent on Ukraine's WTO accession.—Reuters