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Ukraine has no gas debt to Turkmenistan-Naftogaz CEO

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According to Ivchenko, at the beginning of 2006, Naftogaz transferred $88 million to the Central Asian country's state concern, Turkmengaz, as advance payment for gas to be supplied later in the year, but the Turkmen side has failed to meet its obligations and deliver agreed-upon amounts of gas.

KIEV, March 21 (RIA Novosti, Olga Bernatskaya) - Ukraine does not have any outstanding debts to Turkmenistan for natural gas supplies, the president of Ukraine's national energy company said Tuesday.

"We do not have any unsettled debts to Turkmenistan for natural gas supplies," Naftogaz CEO Alexei Ivchenko said.

According to Ivchenko, at the beginning of 2006, Naftogaz transferred $88 million to the Central Asian country's state concern, Turkmengaz, as advance payment for gas to be supplied later in the year, but the Turkmen side has failed to meet its obligations and deliver agreed-upon amounts of gas.

Under a bilateral treaty, Turkmenistan is to ship 40 billion cubic meters of gas at $50 per 1000 cu m in the first half of the year and at $60 per 1000 cu m in the second.

He also said that Kiev was planning to send a delegation to Turkmenistan later this week to clear up the issue of bilateral settlements under current interstate agreements.

On Sunday, Ukraine's prime minister accused Turkmenistan of delaying bilateral settlements on natural gas supplies in the latest row over energy to hit the former Soviet country.

"Turkmenistan has not yet produced a list of Ukrainian goods that will be provided as payment toward gas supplies," Yuriy Yekhanurov said.

The premier said his country had a commodity debt of $80 million and added that as soon as Turkmenistan sent Ukraine a list of goods and services, Kiev would be ready to pay that part of the debt.

"I have already issued instructions that the necessary documents be prepared, and on Wednesday (March 22) we will resume negotiations," Yekhanurov said.

On Saturday, Turkmenistan's Foreign Ministry said that Ukraine was delaying payment for natural gas shipments and threatened to cut off supplies unless the Ukrainian side cleared the outstanding debt. If that were to happen, it would be the second time a supplier had turned off the taps to Ukraine, as Russian energy giant Gazprom cut supplies on January 1 amid a bitter dispute over prices for natural gas supplies. The spat was settled with an agreement three days later.

Turkmenistan became the principal supplier of natural gas to Ukraine after Kiev signed an agreement with Ashgabat to increase Turkmen gas supplies, buying less from Russia.

According to Turkmenistan, Ukraine's debt stands at $158.9 million and the country's foreign ministry said a failure to settle the debt could place energy cooperation in doubt.

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