Ukraine's energy minister was due in Moscow for further negotiations on Gazprom's demand that Ukraine immediately begin paying world market rates for gas it receives from Russia, instead of the highly subsidised price charged at present under a barter system left over from Soviet practices.
Kiev says it is prepared to pay market rates -- and to charge Russia market rates for use of the gas pipeline network on Ukrainian territory that Gazprom relies on to ship gas to customers in Europe -- but wants the shift to take place gradually over several years.
Prior to dispatching his energy minister, Ivan Plachkov, to Moscow, Ukrainian President Viktor Yushchenko chaired a meeting with Prime Minister Yury Yekhanurov, Plachkov and other officials in Kiev.
Gazprom has said it wants Ukraine to start paying 220-230 dollars (185-193 euros) per 1,000 cubic meters of gas it receives from Russia -- roughly the price the Russian gas monopoly charges to customers in Western Europe but more than quadruple the 50 dollars Ukraine pays at present.
Speaking at a cabinet meeting in Kiev, Yekhanurov described a price of 230 dollars as "unacceptable," Interfax news agency reported.
"This is direct economic pressure on the country. This is not a market approach, and the ball remains in Gazprom's court," he said.
The Ukrainian prime minister sparked a storm of protest from Moscow on Tuesday when he asserted that Ukraine had an automatic right under existing accords to take 15 percent of all Russian gas that transits through the pipeline network on Ukrainian territory.
Gazprom quickly slammed that assertion as "irresponsible and legally ignorant," while Russia's influential industry and energy minister, Viktor Khristenko, called it "surprising, at the very least" and said Ukraine had no automatic right to any Russian gas.
The dispute has produced increasingly colorful and testy exchanges between the two sides in recent days, but analysts forecast that despite all the sound and fury as the January 1 deadline approached, a compromise deal would be found.