Ukraine Needs $500 mln Loan to Pay for Gas

Ukraine?s state gas company Naftogaz seeks a credit worth $500 million to pay for the gas supply from Russia.

Ukraine's Energy Minister Ivan Platchkov said that Naftogaz was trying to receive a $300 million credit from an unidentified bank, having got already $200 million loan from the Dutch bank ABN Amro.

In January Russia and Ukraine had a harsh conflict over natural gas pricesm, which resulted in temporary shutoff of Russia?s gas supplies to Europe, which were transiting through Ukraine.

The countries reached a deal under which Ukraine would receive all of its imported natural gas at a nearly twofold price increase from a little-known intermediary company that is owned jointly by Russia?s natural gas monopoly Gazprom and two Ukrainian businessmen. The deal was signed for the first six months of the year only and Russia has already declared its plan to raise the gas price further.

According to Interfax Ukraine, the country's total debt to the intermediary company ? called RosUkrEnergo ? was about $600 million for gas delivered in the first four months of this year.

Naftogaz, however, had earlier insisted that the debt was little more than an accounting difference, noting that Gazprom also owes it money for the transit of gas to European customers.