Naftogaz Expects To Resume Russia Gas Delivery Talks

MOSCOW--The head of Ukraine's state-owned gas company, Naftogaz, said Monday he expects talks with Russia and the European Commission on the resumption of gas deliveries to Ukraine from Russia to resume in July.

Russian state gas giant OAO Gazprom cut off supplies to Ukraine on June 16, after demanding Kiev pay back billions in back debt. Ukraine has refused to pay, after Russia raised the gas price by 80% in April, from $268 per 1,000 cubic meters to $485.5 per 1,000 cubic meters, following the ouster of a pro-Russian president in February by protesters.

Since Russia cut off gas supplies, Ukraine has managed to pump between 20 million and 34 million cubic meters of gas per day into underground storage containers through the country's own domestic supplies and from reverse flows from Europe, Naftogaz Chief Executive Andriy Kobolev said.

While Russia has promised that stopping deliveries to Ukraine won't affect supplies of gas to Europe, which transit through Ukraine, Moscow has warned Kiev could siphon off gas for its own use. The EU has also raised concerns that a drop in volumes held in Ukraine's underground storage facilities could cause damage to the pipeline system.

Write to Lukas I. Alpert at [e-mail]

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