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Russia-Ukraine gas dispute

Deadline for repayment by Naftogaz of $2 bln of debt for Russian gas expires Friday

MOSCOW, May 30. /ITAR-TASS/. The deadline for repayment by Ukraine's Naftogaz of $2 billion-worth part of debt for the supplied Russian gas expires on Friday. The deadline was set during the latest trilateral meeting of Russia, Ukraine, and the European Union (EU) in Berlin on May 26 when a compromise framework was suggested for settling the situation concerning Ukraine's debt for for Rusian gas.

In particular, it is supposed that before the end of the week Naftogaz will remit $2 billion to Russia's Gazprom, thereby partially repaying debt for the already supplied gas and, not later than June 7, remit another $500 million as an advance for June deliveries.

The Russian side stated readiness to carry on the talks, includingn those on possible discounts to Kiev if the first repayment is made on time. Earlie Gazprom had insisted on the amount of $2.3 billion as repayment of the debt for gas and and on making an advance payment.

In the event of departure by Naftogaz from the diagram approved at the latest Berlin meeting, Gazprom will discontinue the supply of gas to Ukraine on June 3. In case of an unsanctioned offteke of gas by Ukraine, Russia intends to introduce an "early warning" mechanism which provides for the setting up of a group of specialists who will monitor and record the amounts of gas supplied to Ukraine's territory.

Earlier this week, the Verkhovna Rada-appointed government resolved to augment the capital of the national joint-stock company "Naftogaz Ukraine" by 22.3 billion hryvnia (about $2 billion) through the issue of additional shares, with the State ownership of 100% of shares preserved. Thereby, the Ukrainian gas company gets resources that may be used for settlements of debts to Gazprom.

At the beginning of June, Ukraine's debt for the Russian gas supplied would grow up to over $5 billion.

Next trilateral meeting on a settlement of the gas-related conflict is due to be held in Berlin on Friday with the participation of Ukraine, Russia, and the EU.

Tags

Oil & Gas Naftogaz Gazprom Russia-Ukraine Gas Dispute

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