RIA Novosti cited Mr Ihor Umanskiy the ex Soviet state acting finance minister as saying that Ukrainian energy company Naftogaz will pay some USD 500 million for natural gas from Russian energy giant Gazprom for October.

Mr Ihor Umanskiy said with four days left until the end of the month, it was too early to announce the exact amount for October but added that it could be approximately USD 500 million.

Naftogaz rejected on Monday reports of gas payment problems, saying it would pay for Russian natural gas supplied in October on time and in full.

A source in Naftogaz earlier on Monday quoted its Mr Oleh Dubyna CEO as saying at a meeting with Gazprom head Mr Alexei Miller that it was increasingly difficult for the Ukrainian energy company to make gas payments and it could be problematic for it to pay for natural gas supplied in October.

Naftogaz paid for Russian natural gas deliveries in September on time and in full largely using borrowed funds.

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.

(Sourced from RIA Novosti)