Ukraine to Buy Russian Gas, Repay Debt

November 19, 2013

Ukrainian energy company Naftogaz Ukrainy will continue purchasing natural gas from Russia until the end of the heating season, Energy and Coal Industry Minister Eduard Stavitsky told reporters Monday, as cited by RIA Novosti, Prime reported on November 18.

Naftogaz Ukrainy stopped buying gas on November 1, saying that it had enough fuel and would not need to buy more gas from Russian gas giant Gazprom until the end of the year. But Gazprom said it was worried that Ukraine could exhaust its reserves, hurting Russian gas transit to Europe. On November 15, Ukraine resumed its purchases in accordance with the existing contract.

Stavitsky also said that Naftogaz Ukrainy’s debt for gas supplied in August and October amounts to around $1 billion, and it will be repaid by the end of 2013.

Kommersant-Ukraine reported citing local energy ministry sources that Gazprom had agreed to postpone the repayment of Naftogaz Ukrainy’s $1.3 billion debt.

The companies have also reached an agreement on a new schedule to pay for Russian gas supplies, Stavitsky said. “Compromise decisions have been made that will allow Ukraine to pay for natural resources on time and in accordance with a newly signed schedule, meeting Gazprom’s requirements regarding gas supplies to the country and gas transit to Europe,” he said.

Naftogaz Ukrainy is now importing 45 to 90 million cubic meters of gas per day, Stavitsky said.

Copyright: Prime, 2013