Russia has offered cut in the price of gas delivered to Ukraine. But Ukraine is still demanding a better deal and calling for arbitration to settle the dispute. Speaking in Moscow, Russian President Vladimir Putin said Ukraine was driving gas talks toward a dead-end by asking for further discounts.

"We believe that our offer is made in more than the spirit of partnership, it is aimed at supporting the Ukrainian economy at a difficult time, aimed to help. But if our offers are rejected, we will enter another stage. This is not our choice. We do not want it." Putin said.

Russia offered a price of 385 dollars per thousand cubic meters of gas. That’s 100 dollars less than Gazprom had previously demanded. Ukraine wants to pay only 268.5 dollars, the price Russia gave ousted president Viktor Yanukovych at the beginning of this year.

Ukrainian Prime Minister Arseniy Yatsenyuk described Russia’s offer as a "trick", asking for a complete revision of the gas supply deal. He said Ukraine wants an agreement based on a "contract, not Russia’s personal attitude."

Ukraine, Russia and the European Commission are expected to continue with talks in the coming days.