KIEV, Nov. 15 - Ukraine will save $500 million per month, or $6 billion per year, after signing a deal with Russia on lower natural gas prices, Prime Minister Mykola Azarov said Tuesday.

Azarov reacted to a report in a newspaper earlier Tuesday suggesting Ukraine and Russia have agreed to lower gas prices to $220-230 per 1,000 cubic meters from about $401/1,000 cu m currently.

“We are holding persistent talks with Russia,” Azarov said in an interview with Pershiy state television on Tuesday. “Once we reach the deal on acceptable gas price, we will at once save roughly speaking $500 million a month, or $6 billion a year.”