Prague  - Russia agreed Thursday to deploy monitors to observe Russian gas flow through Ukraine in a move that "should" lead to resumption of gas supplies to the European Union, the Czech EU presidency said.

The breakthrough followed talks between Czech Prime Minister Mirek Topolanek, whose country chairs the EU until June 30, and Russian Prime Minister Vladimir Putin, the presidency said in a statement.

"Now the only decision missing is to put the gas in the system again," a Czech official close to the talks said.

Earlier Thursday, talks in Brussels on renewal of gas deliveries to Europe fell through because Ukraine rejected Gazprom's demand to include its own observers in the EU's monitoring mission, Czech officials said.

The reversal in Russia's stance came hours after the failed negotiations.

Russia shut down gas deliveries flowing to Europe via Ukraine on Wednesday amid a row with Ukraine over a new delivery contract and alleged unpaid bills. Russia accused Ukraine of stealing gas bound for Europe, an allegation that Ukraine rejected.

The cutoff left several European countries with dwindling gas supplies amid freezing winter temperatures. (dpa)