The Naftogaz Ukrainy (Oil and Gas of Ukraine) company in August should pay to Russia’s natural gas monopoly Gazprom 780 million US dollars for gas received in July, Naftogaz CEO Yevgeny Bakulin told journalists on Wednesday.
Under the contract of January 19, 2009, Naftogaz Ukrainy is to monthly transmit to Gazprom payments for gas supply no later than the seventh day of the month following the gas supplies, Prime-Tass reports. In the event of the first single non-payment the contract between the companies envisages the transition to an advance payment system.
Naftogaz Ukrainy is the state company of Ukraine concerned with extraction, transportation, and refinement of natural gas and crude oil. The company is also active in Egypt and in the United Arab Emirates. Ukraine’s system of trunk natural gas pipelines and underground natural gas depots is operated by Ukrtransgaz, a subsidiary of Naftogaz Ukrainy. Another subsidiary of Naftogaz Ukrainy, Gaz Ukrainy, is responsible for domestic gas distribution to local Ukrainian heat supply companies. In September 2009 the Fitch Ratings of the company dropped from ‘CC’ to ‘C’. Late 2009 the company restructured of its foreign debt via the exchange of eurobonds and obligations on bilateral loans for single investment instruments.
OAO Gazprom (Open Joint Stock Company Gazprom) is the largest extractor of natural gas in the world and the largest Russian company. Gazprom was created in 1989 when the Ministry of Gas Industry of the Soviet Union transformed itself into a corporation, keeping all its assets intact. The company was later privatised in part, but currently the Russian government holds a controlling stake.