Moscow/Kiev  - Russia and Ukraine's state gas monopolists failed Friday to make headway on a long-standing contractual dispute that has caused gas shortages in Europe.

Briefing Russian President Dmitry Medvedev on Friday, Gazprom chief Alexei Miller said there had been "no progress" on the price Kiev should pay for gas and charge for transit tariffs in 2009.

"The negotiations are practically serving no purpose," Miller told Medvedev in the Black Sea resort town of Sochi, where he flew directly from meetings with EU officials in Brussels on Thursday.

Gazprom and Ukraine's Naftogaz had planned to sit for further face-to-face talks after the consultations in Brussels. But both sides only revived mutual accusations on Friday.

Naftogaz head Oleh Dubina echoed his Russian counterpart in saying the talks had led to a dead-end.

"I have the feeling that the (Gazprom) representatives do not have sufficient authority or a mandate to sign any contracts with the Naftogaz delegation," he told a Kiev press conference.

Dubina's remarks were a tit-for-tat rejoinder aimed at Russian Prime Minister Vladimir Putin, who earlier this week blamed Ukrainian political infighting and corruption for the lack of progress.

Russia has accused Ukraine of siphoning off gas meant for Europe. It began reducing its shipments to the former Soviet republic on January 1. By Wednesday it had halted gas exports altogether.

Eleventh hour negotiations were underway Friday over plans to deploy observers from the EU and from the two sides tasked with monitoring the gas flows.

Valery Churpin, a senior Ukrainian energy official, made clear at a Kiev press conference that the EU observer mission in and of itself would not reopen gas pipelines, and that the critical issue for Ukraine was signature of a gas delivery contract between Russia and Ukraine.

"Without it, we cannot begin working again," he said.

Medvedev signaled a hard negotiating line from Russia as well, saying earlier Friday that Russia would no longer offer "discount prices" on gas to Ukraine and instructed the head of Gazprom to resume gas transits "only after all documents are signed."

"We will never stop the theft by any other means," he said. "Unfortunately, [we] have no more trust in the Ukrainian side," Medvedev said.

Gazprom has raised its asking price to 450 dollars per 1,000 cubic metres, a similar price to that currently paid by its European Union clients.

Ukraine, which paid 179.5 dollars for Russian gas last year, has instead offered to pay 250 dollars in 2009, a proposal that led to the New Year's Eve breakdown in negotiations.

Analysts say Kiev's unwillingness to agree on Gazprom's asking price is grounded on widespread industry expectations that the price of natural gas will fall sharply in coming months, following the slump in global oil prices.

Prime Minister Vladimir Putin on Thursday said Moscow was ready to double the transit fees it pays to send gas via Ukraine - from 1.70 dollars to 3.40 dollars per 1,000 cubic meters - but only if its neighbour pays the gas at market prices.

Ukraine's leaders, meanwhile, face growing pressure from voters to resolve the deadlock with Russia quickly, as the effects of the gas embargo start to affect the Ukrainian economy.

Public heating in most Ukrainian cities is already at temperatures lower than normal winter standards, while power utilities have cut back on gas usage or shifted to more expensive diesel or coal. (dpa)