By Jonathan Davies

Russia will sell gas to Ukraine at a cheaper price in a new short-term deal, despite the ongoing conflict between the two.

Ukraine will pay $248 per thousand cubic metres of gas over the next three months, down from the $329 it paid during the first quarter of 2015.

Both sides said negotiations on a more permanent deal will continue, but Ukraine said it will still have to pre-pay Russia for the gas.

As the Ukraine crisis escalated last year, Russia repeatedly threatened to turn off gas supplies after Ukraine struggled to pay its bills.