The national joint stock company Naftogaz Ukrainy will seek the return of USD 1.7 billion worth of RosUkrEnergo's debt assigned under a contract with Russia's Gazprom.

Mr Yuriy Boiko Ukrainian fuel and energy minister at a meeting of the Ukrainian parliament's temporary commission investigating a Stockholm Arbitration Tribunal ruling and the activities of RosUkrEnergo in Kyiv. He said that "If you ask me whether we'll take back [the debt], I can tell you that we'll take it back.”

The minister noted that lawyers advising Naftogaz considered the debt assignment contract to be in force. He said that "The lawyers concluded that it [the debt assignment contract] is in force.”

However, Boiko refused to comment on whether the current government considers legitimate the operations on the purchase and sale of 11 billion cubic meters of natural gas in early 2009, since this is one of the elements building the defense of the Ukrainian side in litigation with RosUkrEnergo currently ongoing in the Ukrainian courts.

Mr Boiko added that "It's very difficult for us now to recount to our international auditors how these transactions [on the sale of 11 billion cubic meters of gas] were conducted, and why.”

It was reported earlier that Naftogaz Ukrainy and Gazprom signed the agreement on assignment of USD 1.7 billion in RUE debt in January 2009 under a directive approved by then Prime Minister Yulia Tymoshenko.

Until January 19, 2009 the disputed 11 bcm of gas was in underground storage in Ukraine. RUE acquired the gas from Gazprom under contracts concluded in 2004-2007. RUE's debt to Gazprom for the gas totaled USD 1.7 billion.

Under the January contracts, Gazprom ceded the creditor rights for the RUE debt to Naftogaz, for which the Ukrainian concern paid USD 1.7 billion it had received from Gazprom as payment for future gas transit services.

(Sourced from www.kyivpost.com)