Gazprom to Pay $1 Billion Advance to Ukraine’s Naftogaz

Gazprom’s management met Naftogaz’s heads to find a solution to the transit fees debate, deciding to pay Ukraine's state energy firm an advance of $1 billion.

“The funds are earmarked for the Ukrainian company to purchase gas from Gazprom to pump into its underground gas-storage facilities,” said Russia's Gazprom in a statement, adding that it could proceed with interruption in case Naftogaz did not comply with the agreement.

“The timely execution of plans to fill the storage facilities with gas is essential for Naftogaz to fulfil its obligations to trans-ship gas to Europe in the winter period without interruption,” Gazprom added in a statement. 

Ukraine’s government wrote that Minister of Energy and Coal Industry Yuriy Boyko met Alexey Miller, Chairman of the Gazprom Management Committee, explaining that “the sides discussed issues of strategic and tactical cooperation in the gas sector.” 

“It has been also discussed the autumn-winter period and the transit of Russian gas to Europe,” reads the note.