Europe's energy commissioner said on Thursday he saw progress in resolving the row over gas prices between Kiev and Moscow and expected one, perhaps two more rounds of ministerial talks on the issue before the end of May.
In his latest letter to EU leaders, Russian President Vladimir Putin urged them to do more to help Ukraine through its economic crisis and to resolve the standoff over gas, repeating a threat to cut exports if Kiev fails to pay in advance for June deliveries.
"There is no reason to be nervous," Commissioner Guenther Oettinger told Reuters, saying the new letter represented progress and would be followed by more talks.
On Monday, Oettinger is meeting Russia's energy minister and the head of Gazprom in Berlin to set a date for further talks.
"Now we are preparing a second and, if necessary a third ministerial before the end of May, between May 26 and May 31."
This as, Putin said in a declaration to foreign leaders that "the Russian Federation is still open to continue consultations and work together with European countries in order to stabilize the situation".
"We also hope that the European Commission will more actively engage in the dialogue in order to work out specific and fair solutions that will help stabilize the Ukrainian economy."
He said state-controlled exporter Gazprom had been forced to demand Ukraine pay in advance for gas as of June after its debt for Russian gas supplies reached $3.5 billion. Moscow has twice reduced gas supplies to Kiev during price disputes, causing disruptions in supplies to Europe, which takes about half of the gas it imports from Russia through Ukraine.
Earlier, Russian Energy Minister Alexander Novak said Russia sees no possibility of Ukraine paying for its gas supplies even if it is granted discounts because of the country's economic situation.
"We even do not have guarantees that even if the price was set at $100 (per 1,000 cubic meters) - I fantasize - that the Ukrainian side can pay these prices because there (in Ukraine) is complete insolvency at the moment," he told journalists on the sidelines of an energy conference.
The United States and Europe urged Russia on Thursday to refrain from any actions that could prevent this month's Ukrainian election from going ahead peacefully, British Foreign Secretary William Hague said.
Speaking after meetings with U.S. Secretary of State John Kerry and EU allies, Hague said Western foreign ministers had agreed Russian behaviour towards the election would determine whether Russia was to face additional sanctions.
This as, the United States and its European allies found broad unity that Russia should face sectoral sanctions if the Kremlin tries to disrupt Ukrainian elections later this month, a senior U.S. official said.
U.S. Secretary of State John Kerry briefed some key European Union foreign ministers on U.S. thinking about sectoral sanctions against Russia, which would cover some of Russia's largest sectors including mining and gas.
"All ministers, led by Secretary Kerry, underscored that a free, fair election across Ukraine, including the east on May 25 is absolutely essential," a senior State Department official told reporters in London.
"There was broad unity in the room that if the elections are disrupted and Moscow's hand is behind that, that we need to move to sectoral sanctions," the official said. "There was no dissent on that subject."