Ukraine’s gas debt to Russia exceeds $5 billion

Tuesday, July 08, 2014

MOSCOW - Ukraine’s unpaid gas debt to Russia has reached $5.3 billion, Gazprom’s CEO has said.

Alexey Miller said on Tuesday that the Ukrainian state-run oil and gas company Naftogaz had made no payment in June amid a dispute over prices with Russian energy giant Gazprom.

Miller said: "The deadline of advance payment for June supplies expired yesterday.

"We have not received any money from Ukraine’s Naftogaz and Ukraine's total debt has reached $5.296 billion." 

"Ukraine needs to pay for 11.535 billion cubic meters of gas, which is equivalent to the gas supplied annually to Poland," he said. 

In April, Gazprom increased its gas prices from $286 per 1,000-cubic meters to $485, terminating its previous more favorable agreement with the former pro-Russian government of Ukraine.

Gazprom filed a lawsuit against Ukraine in a Stockholm arbitration court in June over the dispute.

Gazprom has previously said it will do its utmost to prevent natural gas supply shortages affecting European countries via Ukraine.

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