Russia-Ukrainian talks on averting a natural gas supply crisis were at an effective standstill on Saturday, as a New Year's deadline loomed, according to Deutsche Presse Agentur (dpa). Ukrainian President Viktor Yushchenko in a Friday evening television address to the nation dug his heels in, saying: "There is no objective reason for Ukraine to pay more than 80 dollars for 1,000 cubic metres of gas... we will not accept an ultimatum." Officials at Gazprom, the Russian state-run natural gas monopolist, have insisted Ukraine pay 230 dollars, and have threatened to turn off all natural gas supplies to Ukraine if Kiev fails to sign a contract by 10 a.m. on January 1st. Russian President Vladimir Putin late Saturday afternoon during a televised discussion with Gazprom staff in an apparent last-ditch offer suggested Ukraine pay 50 dollars for the first three months of 2006, and 230 dollars thereafter. Ukrainian government spokesmen said Kiev was prepared to pay full price, but wanted a longer grace period than three months, and a price lower than 230 dollars. "We accept their (Russian) offer concerning a shift to a market price for gas (of 230 dollars), but precisely over the numbers there should be further discussions," said Valentin Mondrievsky. A Saturday morning phone call between Yushchenko and his Russian counterpart Vladimir Putin had little effect on last-minute efforts to avert a crisis, their discussion being limited to "a frank exchange of views on the gas question", according to a statement from Yushchenko's office. --more 21 50 Local Time 18 50 GMT
