Gazprom May Demand Advance Payments from Ukraine

November 1, 2013

Russian natural gas giant Gazprom may demand that Ukraine make an advance payment for natural gas by November if Kiev fails to repay its debt, Deputy Chairman of the company’s management committee Valery Golubev said Thursday, as cited by RIA Novosti, Prime reported on October 31.

“A shift to advance payments is (stipulated in the) contract. If they really do not repay the debt in the nearest time, though the deadline has already passed, it may happen that without making an advance payment in November, they will find themselves in a situation on December 1 when the clause of this agreement will come into force,” Golubev said.

On Tuesday, Gazprom CEO Alexei Miller said that Ukraine had failed to pay Gazprom U.S. $882 million for August supplies, and the contract enables the company to switch supplies to the system of advance payments.

Miller also said then that Gazprom had made a number of concessions to Ukrainian state-owned gas company Naftogaz Ukrainy so that the latter could pay for the supplied gas.

Copyright: Prime, 2013