The president of the Federation of Employers of Ukraine (FEU), Dmytro Firtash has begun negotiations on gas supplies for Ukrainian industry, a source has told Interfax-Ukraine.

"A meeting of the FEU presidium was held on Monday on the initiative of Naftogaz Ukrainy. At the meeting it was decided that attracting alternative gas traders to the Ukrainian market will make it possible to reduce gas prices. The FEU authorized the head of the organization Dmytro Firtash to take part in the negotiation process. Firtash, in turn, supported the view of the meeting participants and has already begun negotiations," the source said.

He did not specify where the negotiations are being held, but said that Firtash planned to discuss gas supplies at lower prices in Turkmenistan, Russia, Kazakhstan and Uzbekistan.

The FEU meeting on December 17 was attended by representatives of industries that are the biggest gas consumers. They said that the current gas contract between national oil and gas company Naftogaz and Russia's Gazprom makes Ukrainian industry uncompetitive, and that liberalizing the market would enable Ukrainian companies to get gas at lower prices.

It was decided that the FEU would play an active role in seeking out alternative sources of gas for Ukrainian industry. A temporary coordinating council set up by the FEU and Naftogaz will help Ukrainian companies make the transition to the new conditions of the gas market.