Russian energy giant Gazprom notified its European partners on Tuesday that Ukraine had a $1.3 billion gas debt, saying it would have to cut deliveries to Ukraine if it failed to repay the sum in October.
"Curtailing natural gas supplies to companies with debts prior to the winter months is annual work carried out by the company to enhance payment discipline," said Naftogaz spokesman Alexei Fedorov.
He noted that Naftogaz, which was obliged to warn consumers about supply cuts five days before taking such steps, had notified its consumers in late September of possible shortages, while Gazprom only made its statement on October 2.
Gazprom said on October 2 that the daily volume of gas taken for Ukrainian consumers' needs fell 22.8% from October 1 through 3, from 158.1 million cubic meters to 122.1 million cubic meters.
Ukraine's first deputy prime minister and finance minister denied on Wednesday that his country had any state debt for Russian natural gas supplies. "I want to declare unequivocally ... that Ukraine has no debts to Gazprom," Mykola Azarov said.
Later on Thursday, the Russian monopoly and Ukrainian officials explained the debt in question was owed by Ukrainian consumers, not the state.
Gazprom said following Wednesday's meeting between Gazprom CEO Alexei Miller and Ukrainian Fuel and Energy Minister Yuriy Boiko that "an agreement was reached that Ukraine's current government will take the problem under its control and ensure payment of the debt before November 1."
Another meeting between the officials has been scheduled for October 8 to discuss the debt settlement and further supplies.
The situation is reminiscent of a bitter price row in early 2006, when Moscow briefly cut off exports to the former Soviet republic, which is also a transit country for Europe-bound deliveries.
The gas price for Ukraine rose from $95 to $130 per 1,000 cubic meters in 2007 after a price rise for Turkmen gas Russia re-exports to Ukraine. In 2008, gas prices could rise further to $143-$180.
