KIEV, June 6 (Reuters) - Ukraine and Russia will restart talks over the weekend to try to resolve a dispute over gas prices, and Kiev is considering paying off debts for last year's Russian supplies, a government source in Kiev said on Friday.
The two sides held two days of talks earlier this week to try to settle the dispute, which could threaten gas flows to Europe, but no meetings are scheduled for Friday, according to sources in Moscow and Kiev.
"The talks will continue on Saturday, Sunday and Monday. We expect to come up with a decision on Tuesday," the source in the Ukrainian government told Reuters, adding that the Ukrainian leadership may agree to pay off its gas debts for 2013.
The two sides differ on how much is owed by Ukrainian state energy company Naftogaz. Ukraine has said its debt for 2013 and 2014 as of April 1 stood at $2.2 billion. It paid $786 million last week.
Russia's top natural gas producer Gazprom says Ukraine owes it a total of $4.46 billion in gas debts. The company declined to comment on the talks on Friday.
Russia has threatened to cut off gas supplies to its neighbor unless Ukraine settles the debt by next Tuesday. That in turn could threaten flows to the European Union.
Europe gets a third of its gas needs from Russia, and almost half of these supplies are sent via Ukraine.
Cash-strapped Kiev wants Russia to return to the price of $268.5 per 1,000 cubic meters it had charged in January-March as a concession to Ukraine's then-president Viktor Yanukovich for his decision to ditch plans for closer ties with the EU.
Russia hiked the price to $485 from April 1 after Yanukovich was toppled by protests and a pro-Western government came to power in Kiev.
(Reporting by Pavel Polityuk; writing by Vladimir Soldatkin; Editing by Mark Trevelyan)