RIA Novosti: Naftogaz Debt Remains Unpaid Even at Low Price – Gazprom Official

BRUSSELS, May 14 (RIA Novosti) – Ukraine’s state-run Naftogaz has not paid any part of its gas debt to Russia, despite Kiev’s announcement that it is ready to cover the debt at a reduced price, a Gazprom official said Wednesday.

“They have not paid even at the old reduced price, the debt remains unpaid,” said Dmitry Khandoga, Head of Gazprom’s Directorate of International Gas Infrastructure Projects.

“I do not know why Ukraine says that they are ready to pay, because we have not received any money. The problem is that Naftogaz is a very unreliable contracting party and it does not matter what the price is – Ukraine’s Naftogaz simply does not pay,” Khandoga said during a conference in Brussels on Russian-EU energy cooperation.

“We have a contract with our European clients, we have a contract with Ukraine and I really hope that the transit contract wi ll be fulfilled,” Khandoga added.

On Tuesday, Russian gas giant Gazprom sent an official notification to Ukrainian national oil and gas company Naftogaz about switching to advanced payment for gas supplies. If Ukraine fails to pay for June deliveries by June 2, Gazprom will cut off gas supplies from June 3.

Kiev responded by saying it is ready to pay the debt on time if Russia agrees to charge in accordance with the old price of $268.

According to Gazprom, Ukraine’s accumulated debt for previous deliveries totals $3.5 billion. On April 1, the price of Russian gas for Ukraine rose to $485 per thousand cubic meters from $268.50, as Russia withdrew two major discounts. Ukraine refuses to recognize the new gas price, which is fully in line with the contract that the two states signed in 2009.