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Nov. 21, 2008
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Ukraine to Settle Gas Debt in 5 Days
Ukrainian government has five days to settle arrears for gas supplies. Ukrainian President Viktor Yushchenko made the respective statement today, during the sitting of the National Security and Defense Council, RBC-Ukraine reported.
The $2 billion debt of Naftogaz is the personal responsibility of Prime Minister Yulia Tymoshenko, the president said, emphasizing that the gas policy of the government leads to Ukraine’s colonization.

The government hasn’t paid for the gas imported far back in the first quarter, the president pointed out, adding that the 2009 price should be economical rather than political.

At the same time, the president went on, the economy should be taken into account also when calculating the rent for the land occupied by the RF Black Sea Fleet and the cost of gas transit and storage.

Yesterday, Russia’s president Dmitry Medvedev committed Gazprom CEO Alexei Miller to collect from Ukraine the gas debt of $2.4 billion either on voluntary basis or by force.

But according to Naftogaz, it owes no more than $1.267 billion. Miller insists that Ukraine doesn’t pay its debts, which amount is amassing.

The issue of debt settlement delays signing of gas contracts of Russia and Ukraine despite the high extent of their readiness. To set the process into motion and to execute the president’s order, Gazprom has threatened to hike the gas price to above $400 per a thousand cu meters for Ukraine starting from January 1, 2009.
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