Ukraine owes Gazprom $1.8 billion

March 14, 2014

Ukraine’s debt for natural gas supplied by Russian giant Gazprom amounts to over U.S. $1.8 billion and may hurt the company’s investment program and dividends, CEO Alexei Miller told reporters on March 13, Prime has reported.

“Gazprom’s shortfall for gas is underfinancing of our current investment program; it’s a revenue shortfall for our budget; this is also a matter of dividend payments to our shareholders. Our owners include a large number of foreign shareholders. This is their income, their dividends. We need clarity on the matter,” Miller said.

He said that Ukraine’s debt has been mounting every month since the beginning of the year. “Ukraine is undergoing a geopolitical crisis, but they have to pay for gas. And we see that our actions toward Ukraine are loyal,” Miller said.

“Under the contract we can shift to taking advance payments for Russian gas supplied to Ukraine. But we are not doing it because it’s a very important moment to avoid an economic collapse in Ukraine and the appearance of risks for Russian gas transit to Europe.”

Copyright: Prime, 2014