RIA Novosti: EU Could Relieve Ukraine Gas Debt With Loan Rather Than Direct Payment

The European Union (EU) should avoid directly paying the natural gas debt that Ukraine owes Russian energy supplier Gazprom, and instead should lend Kiev money to pay its debt, an energy security scholar with The Brookings Institution Tim Boersma told RIA Novosti on Tuesday.

Ukraine's gas debt with Gazprom is $4.5 billion, according to Russian energy giant press release published in June.

"I personally do not think that the EU should pay the gas debt of Ukraine. But perchance it can help by lending the Ukraine money so that it can make arrangements with Gazprom, and Gazprom feels secure that this time it will actually receive the money," an expert said.

"Resumption of natural gas flow could not work out if Russia is not satisfied with the payment guarantees provided by Ukraine," Boersma added.
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