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Ukraine's Naftogaz Proposes Contract Changes to Russia's Gazprom

A worker is reflected in a pressure gauge at an underground gas storage facility near Striy, Ukraine.

Ukraine's state oil and gas company Naftogaz said Monday it had sent Russian gas producer Gazprom a draft proposal with amendments to an existing natural gas supply contract between the two neighbors.

"The supplemental agreement provides for amendments to the terms of the contract in terms of price, volume and conditions of supply of natural gas," the heavily indebted Ukrainian company said in a statement, without providing more details.

Gazprom has threatened to cut off gas supplies to Ukraine if Naftogaz fails to pay some of its $3.5 billion debt for imported gas.

Naftogaz said in the statement that it paid Gazprom $786.3 million on May 30 for February-March supplies, and hence had "fully paid for the supply of natural gas to Ukraine for the first quarter of 2014 at the price of $268.5 for 1,000 cubic meters."

Russia's energy minister has said Moscow and the European Union have proposed that Kiev pay Gazprom $2 billion by May 30, and another $500 million before June 7, as a precondition for a price discount and further talks.

The fourth round of talks between Ukraine, the European Union and Russia are scheduled for later Monday.

See also:
Ukraine Sends $786M Gas Payment to Russia Ahead of Monday Talks

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