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

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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.