Ukraine has reportedly agreed to sign a deal on monitors to track natural gas supplies from Russia to Europe which pass through its territory.

Reports this morning say Ukrainian Prime Minister Yulia Tymoshenko has assured European Commission president Jose Manuel Barroso that she will sign the agreement.

Russia has demanded that Ukraine sign up to the deal before it will resume gas supplies through pipelines that cross Ukrainian territory.

It had accused the country of siphoning off EU gas supplies during the ongoing dispute that saw Gazprom suspend all supplies to Ukraine.

Gazprom subsequently cut all EU supplies via Ukraine, causing shortages in several European countries