European Energy Commissioner Guenther Oettinger says he believes a deal is possible that would see a resumption of Russian gas supplies to Ukraine.
Oettinger said after a May 26 meeting in Berlin with Russian Energy Minister Aleksandr Novak and Ukrainian counterpart Yuriy Prodan there was a "good chance" of reaching an agreement.
Oettinger said under the deal, Ukraine would pay off $2 billion of its debt by May 29.
He said Ukraine would pay an additional $500 million of the debt by June 7.
Novak said Russia was prepared to start negotiations on a price for gas if Ukraine's $2.5 billion bill was paid by May 31.
Ukraine's Energy Minister Yuri Prodan said there was not yet an agreement between Ukraine and Russia to resolve the dispute.
Russia and Ukraine have been locked in a dispute over the gas price and Moscow's demands for prepayment for future supplies that has raised the possibility of interrupted supplies of gas to customers in Europe.
Based on reporting by ITAR-TASS, Interfax, and AFP