The CEO of Russian energy giant Gazprom Alexei Miller and the head of Ukraine state gas company Naftogaz Oleh Dubyna were meeting on Monday but the meeting has not yielded any result so far, a Gazprom spokeswoman said.

'Unfortunately, nothing is happening so far,' she told AFP. 'Everything changes every hour.'

Earlier Monday, Gazprom's board of directors met for an extraordinary meeting, the sole item on the agenda being the situation concerning the Ukrainian gas debts, the spokesman said.

Moscow and Kiev are locked in a price dispute, the fourth in as many years, and Gazprom has said it will cut supplies to Ukraine if it does not pay off its gas debt in full by January 1 so a new contract can be signed.

Gazrpom said in a statement the board meeting had agreed to 'continue work' with Ukraine over payment arrears but did not elaborate.

The statement added that Gazprom would carry out its obligations towards the European gas consumers 'in full", indicating any possible gas cuts would not disrupt supplies to Europe.

The Gazprom spokesman said company specialists were being prepared to be at work over the New Year's night if the company management decided to cut gas to Ukraine.

The Russian gas giant maintains that Naftogaz owes it more than two billion dollars for gas delivered in November and December and fines for late payment.

Russian First Deputy Foreign Minister Andrei Denisov expressed hope Monday that Russia and Ukraine would reach a decision on the gas supplies by the end of the year.

'I am convinced there is a formula for a solution,' he told reporters. -- AFP