Gazprom CEO Alexei Miller said last week Ukraine's gas debt stood at $2.4 billion, and little progress had been reached in talks with Kiev. The Russian president also stressed the importance of receiving full payment for gas supplies citing the financial pressure on Russia due to the credit crunch and falling oil prices.
Tymoshenko said the debt applied to gas stored in Ukrainian underground storage facilities but that had not been used as yet, adding that previously Russia had always granted Ukraine a grace period for payment for such supplies.
"Now the Russian Federation has imposed very tough conditions - that we pay for all the gas. We would like to defer payment for a few months," she said.
Tymoshenko said she hoped an understanding would be reached, adding that a Ukrainian delegation would soon fly to Moscow to discuss the debt situation with Gazprom.
She also said Ukraine would continue to ensure the stable transit of gas supplies to Europe.
"I can not see any threat to the stable operations of the [Naftogaz] company, we are a totally reliable international partner," she said.
Naftogaz head Oleh Dubyna told Tymoshenko on Monday that his company was in negotiations with a number of banks for a loan to pay off the gas debt to Russia.
However, first deputy chairman of Gazprom's management board, Alexander Medvedev, said earlier on Monday the company could take legal action through the international courts over its outstanding gas debt, but added that the gas giant would prefer to reach a compromise with Ukraine.
"We have developed an unpleasant tradition of seeing in the New Year at the negotiation table with colleagues from Ukraine," Medvedev said referring to previous gas disputes. "This year, however, we are hoping for better things."
Dmitry Medvedev said that Gazprom would not negotiate a new gas contract with Ukraine until it had paid off its debt for the gas supplied so far.
The gas pricing row between the former Soviet allies at the start of 2006 led to a brief cut in supplies to Ukraine, which also transits about 80% of Russia's Europe-bound gas. Some consumers in Europe reported a decline in supplies.
