Russia and Ukraine’s leaders have failed to strike a deal that would see Kiev paying a lower price for gas from its former soviet overlord.
The issue was discussed during Russian president Vladimir Putin’s first trip to Ukraine since regaining the top job in May. He and Ukrainian counterpart Viktor Yanukovich could not reach an agreement on the contentious issue of how much Kiev pays Moscow for energy.
Yanukovich says prices set in the 2009 deal struck with former Ukrainian prime minister Yulia Tymoschenko are too high.
Moscow maintains that to get a price reduction, Russian company Gazprom must be allowed to take over Ukraine’s gas pipelines. The pipelines carry gas to Europe.
Another solution would be for the country to join the Russia-led Customs Union. Kiev has sought a free trade deal with the European Union.