Ukraine’s gas debt climbs to more than $5 billion

KIEV, July 8 (Itar-Tass) - Ukraine owes $5.3 billion for Russian gas supplies, energy giant Gazprom chief executive Aleksey Miller told journalists on Tuesday. “Deadline for advance payment for June supplies expired yesterday. But we still have not received any money from Naftogaz,” Miller said. “As a result, Ukraine’s debt for Gazprom gas supplies of 1.7 billion cubic metres from June 1 to 16 has reached $838 million. Its total debt has amounted to a gigantic sum of $5.3 billion,” he added, noting that 11,535 billion cubic metres of Russian gas remained unpaid. “This is a huge amount compared with annual Russian gas supplies to Poland," Miller said. "Ukraine’s unwillingness to pay for Russian gas becomes chronic and proves once again that the transfer of the country to advance payments stipulated in the contract is the only correct decision.” Ukraine imported about 1.7 billion cubic metres of Russian gas in June, Ukrtransgaz, a unit of state gas company Naftogaz Ukrainy confirmed in a statement on Tuesday. Imports to Ukraine grew 1.8 times to 2 billion cubic metres last month, it said. Reverse supplies of Russian gas sent back to Ukraine from customers further downstream reached a little more than 300 million cubic metres. Naftogaz Ukrainy failed to pay for supplies in the first 15 days of June, though it was to do so no later than on Monday, news agency Bloomberg reported, citing company representative Alyona Osmolovskaya as saying the company disagreed with the price set by Gazprom. Reflecting this, Russia's supplier might forward a bill of around $830 million to Naftogaz for June volumes, taking overall debt above $5.3 billion. This was taking into account payments for June and a current Gazprom tariff disputed by Naftogaz, said Bloomberg calculations based on data from the Russian Energy Ministry and Gazprom. Gazprom transferred Naftogaz Ukrainy to advance payments for gas supplies on June 16. Learn more on itar-tass.com