Naftogaz of Ukraine should pay off its debt to Gazprom

A working meeting among Russian Prime Minister Dmitry Medvedev, Russian Energy Minister Alexander Novak and Gazprom’s Management Committee Chairman Alexey Miller took place.

The meeting addressed the relationship of Russia and Ukraine in the gas sector.

Alexey Miller informed Dmitry Medvedev that Naftogaz of Ukraine had not yet settled its debt for the supplied gas. Nowadays it stands at US$2.196 billion and, considering the late payment penalty, it amounts to US$2.44 billion. A letter with a proposal to pay was sent to the Ukrainian company today.

It was highlighted that starting from 1 April, 2015 the discount for Russian gas will discontinue for Ukraine, and all supplies will be provided in strict compliance with the existing contract. Dmitry Medvedev authorised Gazprom to have Naftogaz of Ukraine pay off its debt.

Special attention was given to gas supplies to Europe. Alexander Novak stated that the contract for gas transit via Ukraine would expire in 2019. Afterwards, natural gas will be carried to European consumers by a new route across Turkey. A gas hub will be set up on the Turkish-Greek border. The European Commission jointly with gas consuming countries from Southeastern and Central Europe need to promptly make the relevant infrastructure arrangements so that the agreed amounts of gas were delivered to European consumers.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/22012015/naftogaz-of-ukraine-should-pay-off-its-debt-to-gazprom/