Ukraine to pay Russia $1.5 billion for gas supplies

Dec. 31, 2008
Ukraine's state-owned Naftogaz said Dec. 30 it will pay the $1.5 billion it owes RusUkrEnergo, the Swiss-based gas trading firm used by Russia's Gazprom to supply gas to Ukraine.

Doris Leblond
OGJ Correspondent

PARIS, Dec. 31 -- Ukraine's state energy company Naftogaz said Dec. 30 it would pay the $1.5 billion it owes RusUkrEnergo, the Swiss-based natural gas trading company used by Russia's OAO Gazprom to supply gas to Ukraine.

Naftogaz's agreement to pay follows shortly after Russia's announcement that it would cut off gas supplies to Ukraine Jan. 1, 2009, if that country didn't pay off its debt.

The money covers Ukraine's gas supplies for November and December. The $1.5 billion total does not include penalties for delayed payment, which amount to $450 million.