Gas talks between Russia and Ukraine reached a stalemate Wednesday when Ukraine rejected Russia's gas price cut offer after a disagreement over European gas supplies.

According to Reuters, Kiev demanded that a contract be changed to lower the highest European price for Russian gas supplies, and Russia suggested that it cut gas prices to around $385 per 1,000 cubic meters. 

The disagreement is one dispute in a larger conflict between Ukraine and Russia, with Ukraine rejecting Russia's annexation of Crimea in March. Kiev is also trying to quell the bloody rebellion being waged by pro-Russia separatists in the east, which has continued for more than two months. 

Disputes over the prices Russia charges for gas has been ongoing for years, leading to supplies being cut off to Ukraine in 2006 and 2009. 

Putin said Russia offered a discount of $100 per 1,000 cubic meters to Ukraine by removing an export duty, which would render the price the same price paid by other European customers. 

"The reduction is too little for our Ukrainian partners, they want more, although it's not clear on what basis," Putin said. "If this is the case, then it seems that the issue is being driven into a dead end."''

After Moscow annexed Crimea following the overthrow of pro-Russia president Viktor Yanukovych in February, Moscow doubled the price that Kiev pays for gas. 

Gazprom, Russia's major gas company, has charged a preferential rate to Ukraine to keep Ukraine from fostering ties with the European Union. 

Ukrainian Prime Minister Arseniy Yatsenyuk made it clear Wednesday that Kiev rejected Russia's offer to lower gas prices by removing the export duty, which would not be written into the contract. Therefore, the measure would be completely under Moscow's control. 

"I want to say that we know these Russian traps. The discount is set by the Russian government and canceled by the Russian government," Yatsenyuk told Reuters.

Instead, Ukraine wants to change a 2009 contract that locked the country into buying a set volume of gas--whether it needs the amount or not--at $485 per 1,000 cubic meters. The average gas price for Europe's gas was $387 per 1,000 cubic meters in 2013. 

While the European Commission has brokered peace negotiations, the countries have still not reached a deal after five rounds of talks.

While at the talks, which took place in Brussels, EU Russian envoy Vladimir Chizhov said Ukraine is to blame for the deadlock. 

"These negotiations stand a good chance of success, but this particular tango takes three," he said to Reuters. 

Gazprom extended a deadline for Kiev to switch to prepayment or face a cut off of supplies until Monday. However, it is not clear if the extended deadline has improved chances of brokering a deal. 

If gas supplies are cut to Kiev, other regions in Europe will also receive less supplies, as half of the gas shipped to Western and Central Europe from Russia comes through Ukraine. 

The negotiations have been ongoing while Kiev, Moscow and the Organization for Security and Cooperation in Europe discuss proposals for peace introduced by new Ukrainian president Petro Poroshenko in an attempt to end the fighting in the east. 

Kiev says both countries agree on some aspects of a peace plan. 

According to analysts, reaching a deal on the gas dispute could help the wider conflict at hand. 

Moscow says Ukraine has $4 billion in debts to Gazprom, and must pay some of it before a deal is reached. Kiev paid $786 million last week, and said it will pay the rest once a deal is brokered.