"I think that we will reach an informal agreement by the end of May and that we may strike a formal one by July," Economic Trade and Development Deputy Minister Maxim Medvekov told reporters after a recent round of negotiations with the World Trade Organization in Geneva.

The European Union is pressing Russia to limit its gas subsidies to domestic consumers, which it believes unfairly help Russian companies produce cheap goods for sale on European markets.

The issue is one of several standing in the way to Russia's membership in the powerful body which sets global trade rules, which is not expected to come before 2007.

Keeping in line with other statements from Russian officials, Medvedkov said that "90 percent" of the disputes between Russia and the European Union had been resolved, but refused to give a forecast over Russia's potential WTO membership.

He gave no detail over how the gas dispute with Europe would be resolved.

Russian officials had said earlier that tensions with the European Union remain over anti-dumping procedures for Russian exports into the European Union and food health regulations for Russian food products marketed in the bloc.

Medvedkov, the top Russian negotiator for WTO membership, said only that the gas dispute was a "bilateral issue" between the European Union and Russia, which did not require direct negotiations with the WTO.

But his comments suggest attempts to soothe troubled relations between Moscow and the European Union as the bloc expands into Eastern Europe.

The European Union has asked to renew without any delay and preconditions its existing trade agreement with Moscow ahead of its enlargement with 10 new members, including eight former Communist countries, on May 1.

Russia has dragged its feet on the issue, as it will receive less favorable trade tariffs through the pact with its eight former client states.