Moscow/Kiev  - Russian export monopoly Gazprom on Wednesday accused its Ukrainian counterpart of negotiating in bad faith as talks on preventing a gas embargo failed, setting the stage for a new energy crisis in Europe.

Ukrainian and Russian government representatives quit negotiations in Moscow some two hours ahead of a promised New Year's cut-off of gas deliveries by Russian energy giant Gazprom to Ukraine, as punishment for a 2-billion-dollar Ukrainian debt.

Kiev  - Ukrainian President Viktor Yushchenko on Wednesday called a Russian offer on gas pricing "unacceptable" and urged negotiators to work harder to reach an agreement before a Kremlin-set midnight deadline for full-scale cut in gas deliveries.

Yushchenko rejected Russia's proposal to hike the price of natural gas sold to Ukraine from 179 dollars per 1,000 cubic metres to 250 dollars, on grounds the Russian offer left practically unchanged transit fees to be charged Russia by Ukraine for natural gas shipped to Europe.

Moscow - Russian Prime Minister Vladimir Putin said Moscow had offered and kiev had refused the "very favorable" price of 250 dollars per 1,000 cubic metres, or 40 per cent more, for gas next year.

Putin made the comments in a televised speech as talks with Ukranian officials in Moscow over non-payments and the pricing dispute came down to the wire, increasing the likelihood Gazprom would cuts gas from January 1.

Moscow  - Russian President Dmitry Medvedev urged Ukraine to exercise "common sense" and strike a deal with Russia on gas imports to smooth gas supplies to European customers ahead of a New Year's Eve deadline for gas cuts.

"We can make only one recommendation to our Ukrainian partners: make a reasonable decision as fast as possible," Medvedev said.

Moscow - The deputy prime minister of the Russian province of North Ossetia and his driver were fatally shot in an attack Wednesday, reported the Interfax news agency, citing the North Ossetian Interior Ministry.

No details were available about the attack on North Ossetian Deputy Prime Minister Kasbek Pagiyev. The attack in the north Caucasian province is believed to be linked to the November murder of Vitali Karayev, the mayor of Vladikavkaz. Pagiyev held that position before Karayev.

Moscow - Jailed former Yukos executive Vasily Aleksanyan, in need of treatment for AIDS, was freed on bail after along legal fight for his release, Russian prison authorities said Wednesday.

Aleksanyan paid a 50-million-ruble (1.8 million dollars) bail on Tuesday and was freed from detention, a spokesman for the Federal Prison Service told news agency Ria-Novosti.

The report confirmed a statement by Aleksanyan's lawyer Yelena Lvova, who said the guard had been taken from his hospital ward Tuesday and he had been visited by relatives.

She did not say whether Aleksanian, 36, would leave the hospital.