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Kiev Admits $2.2Bln Gas Debt to Gazprom – Russian Energy Minister

© RIA Novosti . Vladimir Trefilov / Go to the mediabankRussian Energy Minister Alexander Novak
Russian Energy Minister Alexander Novak - Sputnik International
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Ukraine has recognized its $2.2 billion debt to Russia for natural gas deliveries prior to April 1, Russian Energy Minister Alexander Novak said Wednesday.

MOSCOW, May 28 (RIA Novosti) – Ukraine has recognized its $2.2 billion debt to Russia for natural gas deliveries prior to April 1, Russian Energy Minister Alexander Novak said Wednesday.

"Ukraine has confirmed the existence of indisputable debt of $2.237 billion, accumulated in November-March," Novak said at a meeting of the Cabinet attended by President Vladimir Putin.

Russian energy giant Gazprom insists that the accumulated debt, including overdue payments for gas delivered in April after Russia cancelled all discounts for Kiev, is $3.5 billion.

Gazprom CEO Alexei Miller said at same meeting that the company will deliver 3.5 billion cubic meters of natural gas to Ukraine in May, worth $1.7 billion.

"As a result, Ukraine will owe Russia a total of $5.2 billion by June 7,” Miller said.

On Wednesday, EU Energy Commissioner Günther Oettinger said that Ukraine’s gas debt to Russia had reached $4 billion as Gazprom had not received any payments from Ukraine’s Naftogaz since November.

Earlier this month, Gazprom announced a switch to a prepayment scheme, in full accordance with the 2009 energy contract between Russian and Ukraine. Following the decision, an advance bill was sent to Naftogaz for June deliveries, with supplies to be suspended starting June 3 if the debt is not at least partly paid off. Kiev, however, has delayed making a decision on the issue, despite two rounds of three-party talks between Russia, Ukraine and the EU.

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