Subscription and demo access

About Interfax
Press Releases
Products & Services
Contact Us
Customer Login


04/01 19:32   DPR accuses Ukraine of artillery buildup along frontline
04/01 19:28   Daily Headline News for April 1, 2015
04/01 19:27   Militia registered over 30 attacks from Ukrainian side in 24 hours; two men wounded - DPR
04/01 19:22   Investment in Russia could grow 3% in 2016-2018 - Ulyukayev
04/01 19:21   Avtovaz slashes Q1 car sales in Russia 25% (Part 2)
04/01 19:20   Capitalization of Russian stock market increases 1.63% on Wednesday
04/01 19:20   Results of Interregional Trading for OFZ & OBR
04/01 19:09   Zarubezhneft could seek government assistance if interesting project found - deputy head
04/01 19:04   Trilateral gas meeting likely to take place in Berlin - Novak
04/01 19:03   Tatneft boosts IFRS earnings 19% in Q4 to 18.6 bln rubles (Part 2)  |  Interfax news  |  Ukraine refuses to pay gas debt to Russia if...

News headlines

April 12, 2014 16:36

Ukraine refuses to pay gas debt to Russia if price rises

KYIV. April 12 (Interfax) - Ukraine is willing to pay off its natural gas arrears to Russia if the latter reverses its decision to substantially raise the price for its gas, said the chief executive of Ukrainian state-owned oil and gas company Naftogaz.

Ukraine suspended payments for Russian gas for the period of talks in which it is pressing Russian gas monopoly Gazprom (MOEX: GAZP) to go back on its decision to put up the price, Andriy Kobolev told Ukrainian weekly Dzerkalo Tyzhnya (

"We are continuing our negotiations with Gazprom about the price that would be charged as from April 1, 2014. Under the terms of the contract, we have put forward an official proposal for keeping the price at $268.5 per 1,000 cubic meters. We've had no response yet," Kobolev said.

He said that neither Naftogaz nor Gazprom had ever described the $268.5 price, which was charged in the first quarter of this year, as "political," and that this meant there are no market factors to justify a raise.

"As of April 1, the debt for gas acquired by [Naftogaz] amounted to $2.2 billion," Kobolev said. "In the course of our negotiations with Alexei Borisovich [Gazprom chief executive Alexei Miller], we have clearly stated the Ukrainian position that the payment of the debt that has been accumulated is directly linked to keeping the natural gas price at the level of the first quarter of this year."

"We can see no reason to revise it, and we believe that the amount close to $500 that has been suggested by the Russian side is a non-market, groundless and unacceptable price. Consequently, we have suspended our payments for the period of the negotiations," Kobolev said.

He expressed hope that the Russian side would put economic considerations above political ones because Ukraine is one of Europe's largest gas markets and losing it would be painful for Gazprom.

He also claimed that, given the relatively small amount of Russian gas transmitted to Europe through Ukrainian territory, Ukraine's transit charge is too low. The current charge would only make sense if the Ukrainian pipelines were used to capacity and cost relatively little to operate, he argued.

"The reality is that our gas pipeline system is only running at half capacity at the moment, and its cost of financing is very high. This means that the charge should be a lot higher," he said.


(Our editorial staff can be reached at

You can access a demo version of, receive more information about or subscribe to Interfax publications by filling in and returning the form below. We also have dozens of reports in the Russian language, please indicate if you are interested.



First name:


Last name:


Central Asia & Caucasus Business Weekly
Central Asia General Newswire
Global Gas Analytics
Global Natural Gas Daily
Interfax Via Bloomberg Terminal
Kazakhstan General Newswire
Kazakhstan Mining Weekly
Kazakhstan Oil & Gas Weekly
Russia & CIS Announcements
Russia & CIS Banking and Finance Weekly
Russia & CIS Business and Financial Daily
Russia & CIS Business and Financial Newswire
Russia & CIS Business and Investment Weekly
Russia & CIS Business Law Weekly
Russia & CIS Business news
Russia & CIS Defense Industry Weekly
Russia & CIS Diplomatic Panorama
Russia & CIS Energy Daily
Russia & CIS Energy Newswire
Russia & CIS Events Calendar
Russia & CIS Food and Agriculture Weekly
Russia & CIS General Newswire
Russia & CIS Headline News
Russia & CIS Insurance Weekly
Russia & CIS IT and Telecom Weekly
Russia & CIS Metals and Mining Weekly
Russia & CIS Military Daily
Russia & CIS Military Newswire
Russia & CIS Military Weekly
Russia & CIS Oil and Gas Weekly
Russia & CIS Presidential Bulletin
Russia & CIS Statistics Weekly
Russia Health & Pharmaceuticals
Russia Market Roundup
Russia Press Review
Ukraine Business Daily
Ukraine Business Weekly
Ukraine General Newswire
Please enter the digits from picture in the box below:

April 01, 2015
Zarubezhneft could seek government assistance if interesting project found - deputy head
Tatneft boosts IFRS earnings 19% in Q4 to 18.6 bln rubles (Part 2)
Evraz to buy back up to $375 mln in shares at $3.1 apiece (Part 3)
Ukraine Communist chief to be interrogated
CONSENSUS: Dixy EBITDA margin fell to 7% in Q4 - analyst forecast
Lukoil to retain division in Dubai, plans intensive expansion of Houston office
Russia political and economic calendar: April 2 - June 30
Evraz most likely will not pay dividends for 2014 (Part 2)
Russian Eurobonds continue rapid growth
Nurminen adjusting operations in Finland due to fall of paper exports to Russia
Ukraine Security Service: 'there is every reason' to prosecute Communist chief
 more headlines 


Russian Foreign Minister Sergei Lavrov has given an interview with Interfax, in which he summed up the results of this foreign policy year and spoke about the priorities of Russian diplomacy in 2015

Germanys E.ON is spinning its Russian business off to a "New Company" which will be transferred to the companys shareholders, with plans to list it in 2016. Apart from the Russia business, the new company will receive all of E.ONs conventional energy assets. E.ON itself will focus on renewable energy and innovation. Johannes Teyssen, E.ONs CEO, told Interfax in an interview of the logic behind the decision and its implications for the concerns Russian subsidiary OJSC E.ON Russia.

Australian Ambassador to Russia Paul Myler has given an interview to Interfax ahead of the G20 summit in Brisbane in which he speaks about the MH17 crash, the reasons for joining the West‘s sanctions against Russia and explained why Australia expects changes in Russia‘s food policy by March 2015.


 ©   1991—2015   Interfax Information Service. All rights reserved.
contact information   |   Interfax offices   |   made by web.finmarket

News and other data on this site are provided for information purposes only, and are not intended for republication or redistribution. Republication or redistribution of Interfax content, including by framing or similar means, is expressly prohibited without the prior written consent of Interfax.

Browse other Interfax sites:   |   IFX.RU   |   Interfax Group   Rambler's Top100