"UkrgazEnergo has repaid $729 million to RosUkrEnergo as settlement of a debt under an earlier signed agreement for natural gas supplies to Ukraine in 2007," said the company, which supplies Russian and Central Asian gas to Ukraine and is 50% owned by Gazprom.
UkrgazEnergo is a joint venture established by RosUkrEnergo and Ukraine's oil and gas company Naftogaz.
The company said in a press release that UkrgazEnergo's debt of $929 million has been paid in due time as stipulated by the agreement. Earlier this month RosUkrEnergo received a tranche of $200 million as a debt payment.
The parties agreed to pay the debt by November 1, with RosUkrEnergo transferring to Gazprom 8 billion cubic meters of gas from Ukraine's underground gas storage facilities to repay the debt.
Ukraine currently pays $130 per 1,000 cubic meters for gas pumped from and via Russia. Media reports have suggested that in 2008 the price could appreciate to $180.
Gazprom demanded Ukraine pay off its gas debt and threatened to cut supplies on October 2, just a few days after early parliamentary elections. The deal was reached in a week, but it revived memories of a bitter pricing row between Moscow and Kiev in early 2006, which affected gas transits to Europe.
