Russia and Ukraine will resume efforts to resolve a gas pricing dispute after a Russian deadline for Kiev to pay some of its debts passed yesterday without Moscow cutting off supplies.

The gas dispute is at the heart of a crisis between Russia and Ukraine and failing to resolve it would set back peace moves that are gaining momentum after weeks of violence in east Ukraine.

Russia gave Ukraine until 10am Moscow time yesterday to pay some of the billions of dollars it owes, but pulled back from the deadline after officials said talks would continue in Brussels. Russian Energy Ministry spokeswoman Olga Golant confirmed the Russian delegation was flying back to Brussels for evening talks after consultations with President Vladimir Putin who will have the final say on any deal.

Ukraine wants to pay more of its debt, but talks have stalled on the price, threatening possible supply disruptions to the EU, which gets about a third of its gas imports from Russia, almost half of it via Ukraine.

Ukraine wants to change the 2009 contract that locked Kiev into buying a set volume of gas, whether it needs it or not, at $485 per 1,000 cubic metres – the highest price paid by any customer in Europe.

Moscow dropped the price to $268.50 after Ukraine’s then-President Viktor Yanukovych turned his back on a trade and association agreement with the European Union last year, but reinstated the original price after he was ousted in February.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.