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Ukraine's gas debt to hit $5.26 billion

Staff writer ▼ | July 8, 2014
Ukraine's gas debt will increase to $5.26 billion on Monday, if it doesn't pay its bill for June by the July 7 deadline.
Ukraine gas
Ukraine gasUkraine's gas debt will increase to $5.26 billion on Monday, if it doesn't pay its bill for June by the July 7 deadline.


This bill is calculated on gas delivered before Russia's Gazprom switched Ukraine's Naftogaz to a prepayment system.

In the first 15 days of June before the prepayment plan was introduced Russia supplied 1.56 billion cubic meters of gas to Ukraine. If the bill is not paid by July 7 the debt will rise to $5.26 billion, based on the new price of $485 per thousand cubic meters that came into effect in April.

Ukraine has insisted it would pay the bill if it was charged $326, the head of Naftogaz said. Meanwhile the country is seeking ways to diversify away from its dependence on Russia.

On Friday Ukraine's Finance Ministry put forward an eight point plan to escape Russian gas dependence, via developing its own production as well looking for other suppliers. Rural areas with a population of 20,000 people are suggested to switch from boiler heating to biofuels.

The ministry is considering three different ways of using coal to replace gas, each implementing gasification or coal conversion.


 

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