BRUSSELS (QHA) -

Ukraine said on Wednesday it had rejected a Russian proposal that would reduce the price it pays Moscow for natural gas by more than 20 percent and ruled out paying its gas debts until a pricing deal is reached.

Russia proposes to provide a discount of $100 per thousand cubic meters of gas to Ukraine, backed by government decisions, Energy Minister Alexander Novak told a press conference following the latest three-party gas talks in Brussels.

He said the price for Ukraine would be $384.86 with the discount.

"Russia has offered us a gas price cut of $100," - Ukraine Prime Minister Yatsenyuk said in televised comments. "Our position remains the same: we rewrite the contract and get the market price."

Ukraine wants to change the 2009 contract that locked it 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.

QHA