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Gazrom Gives Ukraine 3 Weeks

Gazprom CEO Alexei Miller and Ukraine's Fuel and Energy Minister Yuri Boiko on Monday

Gazrom Gives Ukraine 3 Weeks

Gazprom CEO Alexei Miller and Ukraine’s Fuel and Energy Minister Yuri Boiko on Monday signed an agreement to settle Ukraine’s debt for Russian gas supplies.

Under the agreement, Ukraine must pay the debt until November 1.

The first payment of $200 million is to be made by UkrGazEnergo to RosUkrEnergo before October 22, RosUkrEnergo Executive Director Konstantin Chuichenko told RBC. “If Ukraine fails to pay on time, the agreement allows us to reduce gas supplies pro rata to unpaid debt after November 1,” he said.

$1.2 billion out of the $2 billion owed by Ukraine to Gazprom would be paid by transferring gas kept in RosUkrEnergo’s underground storage facilities into the ownership of Gazpromexport, Russian Prime Minister Viktor Zubkov said at his meeting with his Ukrainian counterpart Viktor Yanukovich in Moscow. “Gazprom will become the owner of this gas,” Zubkov said. The remaining $929 million would be paid by UkrGazEnergo and Naftogaz of Ukraine, according to Zubkov.

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