UPDATE 1-Russia's Gazprom pays Ukraine $2.9 bln as part of gas deal

(Adds confirmation from Naftogaz)

MOSCOW, Dec 27 (Reuters) - Russia's Gazprom said on Friday it had paid Ukraine $2.9 billion to settle a legal row, part of a wider gas package deal reached last week.

Last week, Russia and Ukraine announced the terms of a new gas transit deal under which Moscow will supply Europe for at least five years via its former Soviet neighbor and pay a $2.9 billion settlement to Kiev to end a legal dispute.

In exchange, Kiev is set to drop another legal claim. Russia and Ukraine plan to sign the final deal before the end of this year.

A spokesman for Ukraine's energy company Naftogaz confirmed it had received the $2.9 billion from Gazprom. (Reporting by Vladimir Soldatkin in Moscow and Pavel Polityuk in Kiev; Writing by Katya Golubkova; Editing by Andrew Heavens and David Clarke)