RIA Novosti cited Mr Viktor Yushchenko President of Ukraine as saying that Russian energy giant Gazprom could charge Ukraine nearly USD 8 billion in fines for failing to consume the contract stipulated amounts of natural gas
Mr Yushchenko said "The whole world is waiting for each seventh day of next month settlements made. For the current year, Ukraine has consumed gas worth USD 4 billion half of which was paid through loans. Besides, it has been calculated that the amount of fines for Ukraine as of today is USD 7.8 billion."
Under the current contract, each month payment is due by the seventh day of the following month. Should Ukraine fail to pay on time, the contract stipulates a switch to advance payments.
Russia currently does not oblige Ukraine to pay for unconsumed gas. Mr Vladimir Putin Russian Prime Minister and his Ukrainian counterpart Ms Yulia Tymoshenko agreed during a meeting in early September that Ukraine would not be charged any penalties for the purchase of Russian natural gas in amounts smaller than those stipulated in the contract. But Mr Yushchenko said then that fines are envisioned by the contract, and oral agreements should be transformed into written ones.
Ukraine transits around 80% of Russia's Europe bound gas. Russia, which supplies around one fifth of Europe gas, briefly shut down supplies through Ukraine pipeline system at the start of the year during a dispute with Kiev over unpaid debt. The conflict was resolved in January, when Mr Putin and Ms Tymoshenko agreed deals on deliveries to and gas transit through Ukraine for 2009.
Ms Tymoshenko said Friday that Ukrainian gas monopoly Naftogaz has paid Gazprom USD 500 million for Russian gas deliveries in October. However, she complained about difficulties in making the payment, referring to a complete blockade on the part of the national bank and the president, with local gas consumers providing just 50% to 60% of payment. Ms Yushchenko secretariat has denied that the president is trying to hinder payments for Russian gas.
(Sourced from RIA Novosti)
