Moscow/Kiev - Ukrainian officials said Thursday they hope to resolve a dispute with Russia over gas shipments soon, perhaps by January 7, reported the Interfax news agency.

The statements from Ukraine's president and prime minister come after Russian gas monopoly Gazprom cut all supplies of gas to Ukrainian customers from 10 am Moscow time (0700 GMT) on Thursday morning, jeopardizing the smooth flow of gas deliveries to European clients further downstream.

"I am sure that in a few days, we will find a way out of these discussions, and reach an understanding with our strategic partners," President Viktor Yushchenko said Thursday.

Negotiating positions between the two countries on a new gas contract were still far apart. Ukraine has rejected what Russian called a "very favorable" offer for deliveries at 250 dollars per 1,000 cubic metres without a change to gas shipment tariffs charged by Ukraine for shipping the gas on to western Europe.

Ukraine is ready to pay between 204 and 210 dollars per 1,000 cubic metres of gas per day, Yushchenko said, citing the price as reasonable given an impending downward correction of gas price in line with the sharp drop in global oil prices.

Prime Minister Yulia Tymoshenko added she expected an agreement to come by Christmas Day, which in the Russian Orthodox world falls on Wednesday, January 7.

Over 80 per cent of Russian gas exports to Europe pass through Ukrainian pipelines. (dpa)