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Ukraine's natural gas transit up 26% in first five months of 2008

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KIEV, June 2 (RIA Novosti) - Ukraine increased its transit of natural gas to Europe in January-May 2008 to 55.7 billion cubic meters, a 26% rise compared with the same period last year, the natural gas transit monopoly UkrTransGaz said on Monday.

The increase was mainly due to a growth in Russian energy giant Gazprom's gas exports to Europe in order to meet the demand of its customers.

Gazprom paid a total of $665 million for gas transited via Ukraine from December 2007 through March 2008.

A gas row between Ukraine and Gazprom in early March saw Kiev accuse Gazprom of not paying gas transit fees, while Gazprom blamed Ukraine for failing to send invoices.

Moscow and Kiev partially resolved their dispute in mid-March, agreeing on the size of the debt and a supply scheme.

The dispute earlier this year led to a brief reduction in shipments to Ukraine, sparking concerns among European consumers over possible supply shortfalls similar to those reported at the start of 2006.

UkrTransGaz is a subsidiary of Ukraine's state gas company Naftogaz. It operates a gas pipeline network with a total length of around 37,000 kilometers (some 8,700 miles).

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