Gazprom Claims Ukraine Owes USD 1.56 bln Debt, Threatens to Stop Gas Supplies
8 February 2008
According to Gazprom representative Sergey Kupriyanov, Ukraine’s natural gas debt YTD has reached USD 500 mln, while its total debt exceeds USD 1.56 bln. A representative of Naftogaz of Ukraine said that the company does owe more than USD 1.5 bln, but to Ukrgaz-Energo, the intermediary joint venture (effectively controlled by Gazprom). However, he said that the debt lacks legal backing. Gazprom contends that if the debt is not cleared, it will stop gas supplies to Ukraine starting February 11. In turn, Prime Minister Yulia Tymoshenko and Vice-PM Alexander Turchinov say they will address the issue. Vladimir Nesterenko: It looks like both parties are using the conflict around the trader to get their benefits, Tymoshenko – to remove the intermediary from Ukraine’s gas market, Gazprom – to get a higher price for the gas supplied since Nov. 2007. All things being equal, the conflict increases the risk of another price jump for Ukraine in 2008.
