Ukrainian state-run firm Naftogaz Ukrainy said Monday that it would pay in full for the gas it purchased in October from Gazprom after reports circulated that it might not make payment.
“Our company officially announces that it will pay on time and in full for the consumed natural gas that has been imported in October,” Naftogaz said in a statement on its web site.
Media quoted sources in Naftogaz as saying Naftogaz chief Oleh Dubina had told Gazprom head Alexei Miller last week that the Ukrainian firm would have trouble paying for gas in October.
Naftogaz also urged mass media “not to give way to provocative claims of unknown sources, whose aim is to discredit its partnership with Gazprom.”
Gazprom declined to comment on the situation.
Under an agreement signed by Russia and Ukraine in January, Naftogaz must pay for imported gas not later than on seventh day of every month. It owes Gazprom about $600 million for gas delivered in October.
The deal requires Ukraine to buy at least 40 billion cubic meters of gas, which it has said it cannot afford. Prime Minster Vladimir Putin came to a deal earlier this month with his Ukrainian counterpart, Yulia Tymoshenko, that Ukraine wouldn’t be fined this year for buying less than the contracted amount. Despite the deal, Ukraine’s financial situation is causing concern that future gas deliveries through the country might be interrupted.
“Ukraine’s financial situation is difficult, and the worse it becomes, the higher the probability of another crisis,” said Shirvani Abdullaev, an oil and gas analyst at Alfa Bank. “If another crisis breaks out this time, it will happen not for political but for economic reasons.”
… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.
We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.
Remind me later.