You're reading: Kyiv counting on mutual understanding with Gazprom on $7 billion bill

Lawyers are going over Gazprom demands of Naftogaz Ukrainy relative to the payment of $7 billion for natural gas not imported last year based on 'take or pay' contractual obligations, Ukrainian Energy and Coal Industry Minister Eduard Stavytsky has said.

“Lawyers are studying this matter, and we will provide a proper legal response. I am confident that we will find mutual understanding with our Russian partners,” Stavytsky said at a Wednesday briefing in Kyiv.

Ukraine met all its contractual obligations from a legal standpoint and paid for all the gas it used, the minister said. “As for the matter of the presented bill, I think that there is no question here, that is, Ukraine paid for delivered gas in full,” he said.

Stavytsky said that there is no conflict between Naftogaz Ukrainy and Gazprom in this regard, there is merely a legal process underway.

“Yes, I’ll say it openly, it is an unpleasant fact, but we take it with understanding from the standpoint that the legal aspect of this question is proceeding,” Stavytsky said.

He did not link Gazprom’s demands with the signing of an agreement between Ukraine and Shell on the production of shale gas in two Ukrainian regions. “Gazprom sent the bill before the signing,” so a connection should not be hyped, he said.

Ukraine cut its natural gas imports 26.5% to 32.939 billion cubic meters last year. Almost all the gas was imported from Russia by Naftogaz Ukrainy and Dmytro Firtash’s OstChem Holding, Ltd.

Naftogaz Ukrainy has confirmed reports that it has received a $7 billion claim from Gazprom for gas Ukraine failed to import last year under its 2009 contract terms. The company said it had paid all bills received from Gazprom ahead of deadlines and in full and had repeatedly warned the Russian company that it planned to reduce its purchases of gas in 2012.