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President Medvedev: Switch To Direct Gas Supplies Impossible If Ukraine Not Settle USD 2.4 Billion Of Gas Debt (14:09, Thursday, November 20, 2008)

President of the Russian Federation Dmitry Medvedev believes it is impossible to switch to direct supplies of natural gas if Ukraine does not settle the USD 2.4 billion debt it owes for consumed gas, reads a statement posted at the Russian President official website.

Alexey Miller, chairperson of the board of Gazprom gas company (Russia), says that Ukraine owes about USD 2.4 billion for consumed gas.

"For today this issue is not regulated... the sum is just enormous - USD 2.4 billion," Miller said during a meeting with President of Russia on November 20.

He also added that he saw no possibility of Ukraine repaying this indebtedness in near time.

"By now we've seen no progress in talks with the Ukrainian side about our soon receiving of this money," Gazprom head said.

In his turn, Medvedev voiced the need for the Russian side to take every measure to recover Ukraine's gas debt.

"We have to find our final position toward the debt: either to recover it voluntary or compulsively, as the valid legislation stipulates, as it is affixed within frames of our bilateral relations," Medvedev said.

The Russian President ordered head of Gazprom to inform him on the course of the negotiations with the Ukrainian side.

As Ukrainian News earlier reported, the national joint-stock company Naftohaz Ukrainy has announced that it owes a debt of USD 1.26-1.27 billion to the RosUkrEnergo company for gas supplies.

Naftohaz Ukrainy deputy chairperson of the board Volodymyr Trykolych said that Naftohaz Ukrainy does not owe debts to the Gazprom because RosUkrEnergo is the exclusive importer of natural gas into Ukraine.

RosUkrEnergo announced in early July that Naftohaz Ukrainy owed USD 2 billion for gas supplies.

Naftohaz Ukrainy denied owing USD 2 billion and said that its debt did not exceed USD 897 million as of July 1.

Gazprom announced on November 17 that it was necessary for Naftohaz Ukrainy to pay its gas debt before a transition to direct gas supplies in 2009.

Naftohaz Ukrainy and Gazprom are presently holding negotiations on supply if natural gas to Ukraine in 2009 and subsequent years.

Gazprom owes 50% of RosUkrEnergo.



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