Russia, Ukraine agree to axe gas intermediaries

MOSCOW, Feb 12 (Reuters) - Russia and Ukraine agreed to axe intermediaries in gas trade and instead all business will now be conducted by the state energy firms of the two countries, the head of Russian gas monopoly Gazprom (GAZP.MM: Quote, Profile, Research) said on Tuesday.

Alexei Miller told reporters Gazprom and Ukraine's state energy firm Naftogaz will set up two 50/50 ventures to import gas to Ukraine and sell it inside the country.

Gazprom-imposed gas traders RosUkrEnergo and UkrGasEnergo had been previously responsible for the job. (Reporting by Dmitry Zhdannikov; editing by Conor Sweeney)