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U.S. Aid Pays Kiev Gas Bill

KIEV -- Ukraine intends to pay Russia $72 million for gas supplies in the near future with a grant made available by the United States, senior government officials said Friday.


"We hope to transfer the money to the Russian gas company Gazprom shortly to pay for October gas supplies," said Economy Minister Roman Shpek.


The money had been placed in a special bank account for Ukraine's use, Shpek and U.S. officials told a news conference.


The grant was part of a $200 million assistance package pledged to Ukraine by Washington during President Leonid Kuchma's visit to the United States in November. Ukraine owes Russia about $1.4 billion for gas.


Officials said the government was taking drastic measures to cut energy use after below-zero temperatures had added to the country's energy problems. Deputy prime minister Anatoly Dyuba said television broadcasting time, street lights and hot water would be severely curtailed.

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