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Naftogaz notifies Gazprom about its inability to pay for gas supplies in February

Ukraine's energy company Naftogaz on Monday notified Russia's national gas utility Gazprom that it would not be able to pay the entire sum for the Russian gas it had bought in February, a source in Gazprom told Itar-Tass on Tuesday.

Naftogaz warned about possible problems with payment for Russian gas supplies in February a week ago.

According to Ukraine's Minister of Energy Yuriy Prodan, Naftogaz is to pay about $400 million for gas imports in February under the contracts between Naftogaz and Gazprom.

In December 2013, Gazprom said it would reduce the gas price for Naftogaz by 33% to $268.5 per 1,000 cubic meters of gas. The then gas price was $400 per 1,000 cubic meters.

The undiscounted price for Russian gas in the first quarter of 2014 would be $378 per 1,000 cubic meters.

Earlier on Tuesday, Gazprom CEO Alexei Miller said that Gazprom had taken a decision to cancel gas discounts for Ukraine from April 2014. "In the situation when Ukraine does not fulfill its liabilities, does not fulfill those agreements which were reached in an addendum to the contract on granting the gas price discount Gazprom decided not to extend the discount from the beginning of the next month," Miller said.

[Source: Itar Tass, Moscow, 04Mar14]

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