Ellington

MOSCOW (AP) — Russia offered Wednesday to restore the discounted prices it granted Ukraine under the ousted pro-Russian president, but Ukraine demanded an even better deal and called for arbitration to settle the dispute.

Speaking in Moscow, Putin said Russia was offering the discount as a "partnership deal." Russia's Energy Minister Alexander Novak specified the price offered as $385 per 1,000 cubic meters of gas, according to Russian news agencies.

"We believe that our offer is more than in a partnership spirit aimed to support the Ukrainian economy at a rather difficult time," Putin said in televised remarks. "But if our offers are rejected, this means, we will enter another stage, this is not our choice. We do not want it."

Ukraine's energy minister Yuri Prodan said in comments carried by Russian news agencies that Ukraine was seeking a price lower $385 per 1,000 cubic meters, which is what Ukraine had been paying until late last year. The minister said the Ukrainian government now believes that arbitration is the best option to solve the dispute.

Prodan, however, added that Ukraine is open to talks to hammer out a temporary price while arbitration is proceeding.

Putin and Russia's energy minister, Alexander Novak, said Wednesday the government was also ready to guarantee the discounts would remain in place for one year.

It wasn't immediately clear if Russia expected something in return.

Ukraine's Prime Minister Arseniy Yatsenyuk earlier Wednesday said that Kiev initially rejected the Russian offer because there was no guarantee that it would last.

Gazprom, Russia's gas giant, earlier on Wednesday gave Ukraine another week before it would start demanding prepayment for gas, without which it has threatened to cut off supplies.

Gazprom CEO Alexei Miller told Russian news agencies after Brussels-brokered talks with Ukraine in the early hours on Wednesday that the deadline would be pushed forward to next Monday.

Russia and Ukraine are negotiating ways for Kiev to clear its outstanding debts, the amount of which is being disputed. Kiev has been late with payments, prompting Russia to threaten to demand payment up front for future deliveries or it might restrict supplies.

Russia canceled price discounts for Ukraine following the ouster of pro-Russian President Viktor Yanukovych. Ukraine has been seeking a new price agreement before settling debts.