Russian, Turkmen leaders fail to reach new gas deal

TURKMENBASHI, Sept 13 (Reuters) - Russian and Turkmen leaders failed on Sunday to set a timeframe to restore Turkmen gas flows to Russia, halted since April after a pipeline blast which left the Central Asian nation short of revenues.

The meeting between Russian President Dmitry Medvedev and Turkmen leader Kurbanguly Berdymukhamedov had been expected to generate a breakthrough and mend ties. Relations suffered a blow after Turkmenistan accused Russia of suspending imports of gas because Moscow faces reduced demand for its own gas in Europe.

Berdymukhamedov told Medvedev on Sunday the two sides have managed to solve most technical problems and he expected a new deal to be agreed under a new pricing formula.

Kremlin's foreign policy aide Sergei Prikhodko also told reporters Russian and Turkmen gas firms would meet soon to finalise the timeframe and pricing. (Reporting by Denis Dyomkin, writing by Dmitry Zhdannikov, editing by Conor Sweeney)