Interfax-Ukraine reported that RosUkrEnergo plans to seek USD 500 million in damages from Naftogaz Ukrainy.

The claims will be examined in Stockholm arbitration in March 2011.

The article notes that the Fuel and Energy Ministry and the State Customs Service have proposed deferring Naftogaz tax payments in light of the need to transfer 11 billion cubic meters of gas in underground storage to the ownership of Switzerland-registered RUE.

According to calculations by Mr Dzerkalo Tyzhnia and sources in the Cabinet of Ministers that, "Owing to the idiosyncrasies of the Ukrainian tax system, the budget stands to lose UAH 30 billion to UAH 35 billion. Lost revenue from the non-payment by Naftogaz of just two taxes VAT and profit tax might total UAH 14 billion to UAH 15 billion. Those idiosyncrasies will result in a hole in Naftogaz budget a shortfall in working capital amounting to UAH 15 billion at a minimum."

That happens to be the limit for Naftogaz budget deficit contained in Ukraine memorandum with the International Monetary Fund. The article says "But the total turns out to be more than solid about UAH 60 billion to UAH 65 billion."

(Sourced from Interfax-Ukraine)