Ukraine and Russia have opened sensitive talks over the continued basing of Russia's Black Sea Fleet on Ukraine's Crimean peninsula.

The meeting in Kiev was called Tuesday after Ukrainian officials raised concerns over the 1997 deal allowing a Russian navy base there in exchange for $93 million.

Ukraine's Deputy Foreign Minister Volodymyr Ogryzko told reporters that Russia should increase payments to reflect market prices.

The head of the Russian delegation, Deputy Foreign Minister Grigory Karasin, said Russia hopes to resolve Ukraine's concerns, but said the 20-year deal should remain intact.

The talks are being held under the auspices of a presidential commission aimed at resolving disputes between the nations.

Last month, the two former Soviet nations argued about a price hike for Russia gas sent to Ukraine.

Some information for this report was provided by AFP and AP.