Ukraine and Russia signed a supply deal last month after a three-week standoff over Naftogaz's unpaid debts and new prices, which led to supply cuts to Europe, sending residents shivering in a cold winter and businesses shutting for lack of energy.
"Naftogaz announces that the situation as regards paying Gazprom could worsen because of the catastrophic rise in debts of regional utility companies," Naftogaz said in a statement.
Ukraine now pays for Russian gas monthly, a week after the month's supply. Under a new 10-year agreement signed with Gazprom last month, however, if Ukraine is late on a payment, the settlement switches to prepayment.
Naftogaz has frequently complained of local debtors, particularly the utility providing energy and heating to the capital, and even cut off gas to parts of Kiev in late December.
The supply deal with Russia gives Ukraine a 20 percent discount on European market prices, which means that Naftogaz pays $360 per 1,000 cubic meters from $179.5 last year.
Source: The Moscow Times
Author: Ksenia Kochneva
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Naftogaz Says It May Pay Late for Gas
Unpaid local debts owed to Naftogaz are threatening its ability to pay for Russian gas on time, the company said Thursday
