Kievenergo Compromises With Gas Suppliers.

Gas supplies were cut yesterday to six of Kievenergo’s (KIEN: BUY) boiler plants, a day after the state gas company Gaz Ukrainy accused KIEN of preventing supply cuts. Gaz Ukrainy is pressuring KIEN to make overdue payments for gas supplies, as KIEN has paid for only 92% for gas supplies in 2006, due to the poor payment discipline of KIEN’s customers. KIEN said the idling of the boilers would not cause problems for hot water supplies to homes. Alexander Paraschiy: The cut-off represents a compromise between KIEN and Gaz Ukrainy, which we expect will be followed up with an agreement to restructure KIEN’s debt, as happened in each of the last three winters.