B2B Payments

Ukraine Put On Gas Repayment Plan

The battles between Russia and Ukraine continue, but now the issue at-hand is the utility bill.

According to several reports, Russia created a repayment plan for Ukraine, after Ukraine allegedly failed to pay for natural gas it received from Russia.

Gazprom explained in a statement on its website that the decision was made due to “systematic failure of Naftogaz Ukraine to pay.” Specifically, the debt stands at $4.458 billion, including $1.451 billion for November and December 2013 and $3.007 billion for April and May 2014.

Gazprom spokesperson Sergey Kupriyanov explained in a press conference that since Naftogaz has paid zero, his company will deliver zero.

Both sides announced that they were opening lawsuits with the Stockholm chamber of Commerce Arbitration.

On Ukraine’s side, Naftogaz is seeking a $6 billion sum for what it calls unfair gas prices. The organization is also asking the court to review prices that were agreed on in 2010, under then Prime Minister Yulia Tymoshenko.

EU energy minister Gunther Oettinger has been the main broker between the three-way talks between Russia, Ukraine and the EU. He explained at a press conference in Vienna that he’s urged Russia to reconsider the repayment plan option, but that “further invitations for trilateral talks in June are foreseen.”

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

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