MOSCOW, December 31 (RIA Novosti) - Russia' s president and prime minister on Wednesday evening discussed the situation regarding last-ditch gas talks between Gazprom and Ukraine as Kiev rejected a new offer of $250 per cu m in 2009.

Vladimir Putin noted during the discussion that "the consequences could be dire for Ukraine if it annuls its gas transit contract with Gazprom." He also informed Dmitry Medvedev that "the present contract is valid until December 31, 2010, and cannot be changed."

Putin said that Gazprom had offered Ukraine gas in 2009 at $250 per 1,000 cu m up from last year's price of $179.50, however, Ukraine has refused to pay. Putin said that talks would continue.

Putin said that as Russia buys gas from Turkmenistan, Uzbekistan and Kazakhstan at some $340 per 1,000 cu m for transit through Ukraine, which receives transit fees, then Kiev should pay around $380 for its gas. The low price of $250 had been made by Gazprom as a "humanitarian gesture," he said.

Earlier in the evening Ukraine's Prime Minister Yulia Tymoshenko was reported to be on her way to Moscow for last-ditch negotiations on a new contract; however, her trip was canceled. Sources in Kiev said the visit would have undermined the Ukrainian president's position.

Ukraine's President Viktor Yushchenko has recalled the country's negotiation team, led by Naftogaz head Oleh Dubyna, back to Kiev, a Naftogaz source said on Wednesday.