Ukrainian President Viktor Yushchenko said on Sunday that his country was ready to pay a "reasonable market price" for Russian gas.

Yushchenko made the remarks after a meeting with cabinet members, including Prime Minister Yuri Yekhanurov.

But he added that the price proposed by Russia's state-owned gas monopoly Gazprom -- 230 U.S. dollars per 1,000 cubic meters, as from Jan. 1, 2006 -- was unacceptable to his country.

The president also said he would ask his Russian counterpart, Vladimir Putin, to bring Gazprom back to the negotiating table in order to find a solution to the deadlocked gas dispute between the two countries.

Kiev had "never abandoned the negotiations" and Moscow was putting "economic pressure" on Ukraine, Yushchenko said.

"Until the last minute yesterday, we were in a constructive negotiating position. There was a feeling that the parties had almost come to an agreement," he said. "Unfortunately, Gazprom interpreted this as a rejection of the proposed deal by the Ukrainian side."

Yushchenko also insisted that Moscow's move would not affect Russian gas transit through Ukraine to European countries, saying "Ukraine assures the transit of gas to Europe without obstacles."

Meanwhile, Ukraine's emergency situations ministry set up a special crisis center and officials warned that heating stations and industrial enterprises in southern and eastern parts of the country could face gas supply reductions.

Ukraine and Russia have been locked in a bitter dispute over gas prices, with Moscow asking Kiev to pay more than quadruple the current price -- 50 dollars per 1,000 cubic meters -- for the gas it buys from Russia.

Earlier in the day, Gazprom said it was cutting down its natural gas supply to Ukraine after Kiev rejected Russia's demand.