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.

Kiev  - Ukrainian Prime Minister Yulia Tymoshenko cancelled a trip to Moscow on Wednesday for last-ditch negotiations to avoid gas cuts by Gazprom on January 1 if Kiev fails to pay down a 2-billion dollar debt before midnight.

"There are enough specialists from (Ukraine's) Naftogaz undertaking negotiations in Moscow for the signing of a future gas contract," the Ukrainian government said in a statement to news agency Interfax.

Moscow  - Ukrainian Prime Minister Yulia Tymoshenko will fly to Moscow on Wednesday in last-gasp talks to avoid gas cuts to Ukraine ahead of a midnight deadline set by Gazprom for the settlement of a 2-billion-dollar debt.

"The embassy confirms that Prime Minister Yulia Tymoshenko is coming to Moscow on Wednesday for the final stage of the negotiations over Gazprom issues," Interfax news agency quoted Ukraine's embassy in Moscow as saying.

Moscow/Kiev - Ukraine's government on Tuesday ordered a pair of state banks to pay off a massive debt owed Russia, raising hopes of a breakthrough in a tense standoff between Kiev and the Kremlin over energy, and with European natural gas supplies hanging in the balance.

An order signed by Ukrainian Prime Minister Yulia Tymoshenko made public early Tuesday evening instructed a pair of Ukrainian state- owned banks to loan funds necessary to cover the debt, estimated by Ukraine at one billion dollars and by Russia at two billion dollars.