Russia and Ukraine failed to resolve a gas row at a meeting in Moscow but will continue talks to end the dispute which has choked off supplies to Europe, a senior Ukrainian gas official said yesterday.

"We are in negotiations," Ukraine's Naftogaz chief Oleh Dubyna told the European parliament after an overnight meeting with Alexei Miller, head of Russia's state-controlled gas monopoly Gazprom.

"I can see just purely economic gaps between Naftogaz and Gazprom."