REUTERS

Russia has offered to pay Ukraine about US$3 billion to end a legal row over gas, a source close to talks told Reuters on Friday, in line with the amount proposed in arbitration rulings between Russian Gazprom and Ukrainian Naftogaz.

The legal row had blocked a new deal to supply Russian gas to Ukraine and the rest of Europe, Reuters said.

Read alsoUkraine, Russia reach "agreement in principle" on gas transit

The existing supply agreement expires on December 31. Talks on a new pact have been underway.

Russia's Energy Ministry and Gazprom did not reply to requests for a comment. Ukraine's Energy Ministry and Naftogaz declined to comment, Reuters said.