Naftogaz Ukrainy Cuts Debt to Gazprom

Ukrainian state-owned natural gas company Naftogaz Ukrainy has reduced its debt to Russia’s Gazprom for August supplies to U.S. $792 million from $882 million, Prime reported on November 6, citing Naftogaz Deputy CEO Vadim Chuprun.

He said that power companies, whose money Naftogaz is using to repay Gazprom, were redeeming their debts very slowly.

“If we could collect the money, we would have immediately sent it to Gazprom,” Chuprun said when asked whether the company had enough funds to cover the entire debt.

Gazprom has threatened to demand that Ukraine make an advance payment for natural gas by November if Kiev fails to repay the debt.

The November purchases will depend on the settlement of conflict with Gazprom.

“We will look at how the situation is developing, how the debt issue is solved and how Gazprom reacts; we will look at the prices and will aim to prevent a deficit in the winter. We must take a very delicate approach,” Chuprun said.

Copyright: Prime, 2013