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Ukraine plays down fears of new gas crisis with Russia

© Iliya Pitalev / Go to the mediabankGazprom
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Ukraine's national energy firm Naftogaz gave further assurances on Wednesday that no new gas crisis with Russia is looming, as it has been paying for supplies on schedule.

Ukraine's national energy firm Naftogaz gave further assurances on Wednesday that no new gas crisis with Russia is looming, as it has been paying for supplies on schedule.

The statement came after the National Security Council's warning on Tuesday of the threat of a new gas dispute with Moscow, similar to the one at the start of the year, which caused losses for industries and left households in Europe without heating.

"There are no financial conditions that could prevent the next payment for imported natural gas. There is nothing to suggest a new gas crisis," the company said. It also criticized the Council, headed by President Viktor Yushchenko, for its "destabilizing" statements.

Naftogaz and Russian gas monopoly Gazprom signed a 10-year contract in January, ending the New Year dispute and resuming supplies to and via Ukraine. Ukraine transits about 80% of Russian gas bound for the EU, which buys one-fifth of its gas from Russia.

Moscow later agreed to supply 35% less than the contracted gas volume to Ukraine, agreeing not to fine the country, which has been hard-hit by the global recession.

Naftogaz has made its monthly gas payments to Russia on time this year. And Ukrainian officials vowed to ensure uninterrupted transits at a summit with the European Union last week.

The National Security Council raised concerns in a report yesterday about a pact between Russia and the EU on measures to preempt energy crises, saying it was targeted against Ukraine.

The Russian-Ukrainian also contract stipulates Kiev start paying European-level prices for Russian gas in 2010, ending discounts enjoyed by the ex-Soviet state.

KIEV, December 9 (RIA Novosti) 

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