By Jonathan Davies

Russia could offer Greece loans and discounted gas in return for "Greek assets" in the latest twist in the Greek debt saga.

Greece's Prime Minister Alexis Tsipras is due to meet Russian President Vladimir Putin tomorrow (Wednesday) to negotiate a possible deal.

Greece has been locked in various talks with the EU since January over new loan deals to extend its €240 billion bailout package.

The move to meet with Russia has been criticised from various corners of the EU as it's determined to present and strong and united front against Russia over Ukraine.

President of the European Parliament Martin Schulz has said that it would be "unacceptable” if Greece “jeopardised Europe's common policy on Russia” by seeking alternative funding from Russia.

The Kommersant newspaper quoted a Russian government source saying: “We’re ready to consider the question of providing Greece discounts on gas: the price for it is tied to the cost of oil which has significantly fallen in recent months.

“We are also ready to discuss the possibility of granting Greece new loans. But here we, in turn, are interested in reciprocal moves — in particular, in Russia receiving particular assets in Greece.”

Earlier, Mr Tsipras demanded that Germany pay reparations worth €279bn for crimes committed by the Nazis.