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.

The Ukraine's embassy in Moscow had earlier confirmed Tymoshenko's visit after a purported breakthrough in the gas dispute between the two countries.

Ukraine's government led by Tymoshenko ordered a pair of Ukrainian state-owned banks to extend state-owned gas monopoly Naftogaz an emergency credit for the settlement of its debt to Gazprom.

Gazprom officials said it had not yet received any payment and accused Ukraine of blackmailing it with the threat of seizing gas transits to European clients. (dpa)