Gazprom threatens Ukraine with hefty gas fine

17 Apr, 2009

Russian gas export monopoly Gazprom has threatened to fine Ukraine for not buying as much gas as stipulated in its contract for the first quarter of 2009, a top Ukrainian official said on Thursday. Bogdan Sokolovsky, an energy aide to the Ukrainian president, told AFP Gazprom had issued Naftogaz a written warning earlier this month.
Gazprom's letter "underlined that Ukraine has not used the planned volume of gas, which under the terms of its contract allows for sanctions to be imposed," Sokolovsky said by telephone.
Such fines could reach up to 1 billion dollars (750 million euros), a source close to the Ukrainian government told AFP. Russia is due to pump 5 billion cubic metres of natural gas to Ukraine in the first three months of the this year. But in reality, Ukraine has purchased only half the stipulated amount, or 2.5 billion cubic metres, Naftogaz spokesman Valentin Zemlyansky told AFP. Kiev is obliged by contract to pay for at least 80 percent of that volume, even if it consumes less, according to Zemlyansky.

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