Ukraine's national natural gas company Naftogaz said Tuesday it has paid fully and on time for the gas for September delivery purchased from Russia's OAO Gazprom (GAZP.RS).
Naftogaz, a vital link for the transit of Russian gas to the European Union, said that despite Ukraine's "internal political and economic difficulties, and a difficult restructuring of the company's debt," Naftogaz will continue to supply gas to the local consumers and ensure a stable gas transit to Europe.
Naftogaz is now in talks with its creditors on a restructure of a $1.6 billion debt, including a $500 million Eurobond, on which the company technically defaulted Sept. 30.
In January, a row over late payments and gas prices between Ukraine and Russia saw the latter cut off natural-gas supplies to the former for two weeks, sparking supply shortages in a host of European countries that are dependent on Russian gas piped through Ukraine.