Nov. 24 (Bloomberg) -- OAO Gazprom agreed to cut natural gas supplies to Ukraine next year and waive fines for fuel it doesn’t take following an accord between Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Timoshenko.

Gazprom, Russia’s gas export monopoly, will supply 33.75 billion cubic meters to Ukraine next year, the Moscow-based company said in an e-mailed statement today. Ukraine’s NAK Naftogaz Ukrainy in January had committed in a 10-year contract to purchase 52 billion cubic meters next year.

The amended contract was signed by Gazprom Chief Executive Officer Alexei Miller and Naftogaz CEO Oleh Dubina in Moscow.

Ukraine, which faces its first recession in a decade, cut gas consumption after the global financial crisis dented demand for steel exports, dried up investments and weakened the country’s currency. It may take 28 billion cubic meters of gas from Russia this year, instead of the 42 billion cubic meters agree on, President Viktor Yushchenko said last week.

Ukraine took 18.85 billion cubic meters of gas from January through October out of the 31.7 billion cubic meters it had committed to, according to today’s statement.

Russia agreed to waive fines on the country for consuming less gas than contracted this year, Putin said on Nov. 20 after talks with Timoshenko in Yalta, Ukraine. Volumes for 2010 would be decided between the companies, he said.

Ukraine sought to buy about 30 billion cubic meters of gas in 2010, Yuriy Prodan, the country’s energy minister, said in an interview in Yalta on Nov. 19. Supplies will be higher than in 2009, Russia’s Deputy Prime Minister Igor Sechin said at the time.

-- With assistance from Maria Kolesnikova in Moscow. Editors: Jonas Bergman, Guy Collins

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

Last Updated: November 24, 2009 13:02 EST