Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

​Gazprom sends Ukraine $11.4bn bill for unshipped gas

Published time: April 24, 2014 17:31
Reuters / Gleb Garanich

Reuters / Gleb Garanich

Russia’s Gazprom, the world’s biggest natural gas producer, has sent a $11.4 billion bill to Ukraine’s Naftogaz. The money is for the two thirds of the gas it failed to use under its 2009 take-or-pay contract .

According to the contract Naftogaz had to consume 41.6 billion cubic meters of gas last year, while Ukraine used only 12.9 billion cubic meters, Bloomberg quotes Aliona Osmolovska, a spokeswoman for the Ukrainian company as saying.

In the take-or-pay contract Ukraine is obliged to pay for the volume agreed, whether it is used or not.

Ukraine is looking to avoid dependence on Russia, accusing President Vladimir Putin of using energy exports as a political tool.

About half of Ukrainian gas imports come from Russia and 15 percent of Europe’s annual gas consumption goes through Ukrainian pipelines. This makes the energy issue a central problem as tensions with Russia escalate.

Russia is clearly whipping up tension before Ukraine’s talks with Europe, understanding that Naftogaz won’t pay,” Bloomberg quotes Bohdan Sokolovskyi, an energy adviser to former Ukrainian President Viktor Yushchenko. “Under the contract, Gazprom truly has the right to demand $11.4 billion. The other issue is the contract was unfair.

In the talks with Europe Ukraine wants to reverse the flow in EU-bound pipelines to supply its domestic needs.

Last week Vladimir Putin said that Gazprom will switch to a pre-payment system next month if Ukraine doesn’t settle the accumulated $2.2 billion gas debt.

Currently Ukraine needs to pay $485 per a thousand of cubic metres of Russian gas, which compares to $268.5 agreed between Russia and Ukraine in December.

Kiev has repeatedly said this price is “unacceptable”, purely "political" and isn't ready to pay it.

Comments (48)

 

Dave Harpe 31.05.2014 16:16

There has been talk about Ukraine suing Russia for the Chernobyl disaster, in order to get lots of money and free natural gas. I suspect that's not going to happen, because it would set a precedent that would, for example, allow Japan to sue the American corporation General Electric for the even bigger disaster at Fukushima, caused by reactors built by General Electric.

 

Alexey R 28.04.2014 11:55

will 27.04.2014 00:07

Many are pointing out that more than 20 trillion dollars plus interest is owed to Ukraine because of the Chernobyl disaster due to land, people destroyed by the incident. This does not include debt owed to other countries and people affected by "Russian" made disaster.....So why worry about a small debt for gas?

  


Brilliant idea. Chernobyl is Ukrainian nuclear power station which caused a lot of damage to neighbouring Belarus, Russia and Poland. Let’s sue the Ukraine for the damages for 30 trillions as you suggesting.

 

will 27.04.2014 00:07

Many are pointing out that more than 20 trillion dollars plus interest is owed to Ukraine because of the Chernobyl disaster due to land, people destroyed by the incident. This does not include debt owed to other countries and people affected by "Russian" made disaster.....So why worry about a small debt for gas?

View all comments (48)
Add comment

Authorization required for adding comments

Register or

Name

Password

Show password

Register

or Register

Request a new password

Send

or Register

To complete a registration check
your Email:

OK

or Register

A password has been sent to your email address

Edit profile

X

Name

New password

Retype new password

Current password

Save

Cancel

Follow us

Follow us