We're Not Breaking World Law, Ukraine Minister Tells Gazprom

Ukrainian Deputy Energy Minister Volodymyr Makukha has denied that importing natural gas from European markets violates international law.

Russia's energy giant, Gazprom, has accused Ukraine of acting fraudulently by pursuing reverse shipments of European natural gas. Most of Russia's natural gas for the European market is piped west through the Ukrainian gas transit system.

"It's an absolutely legal and clean arrangement: gas crosses the Ukrainian border, so what questions can there be?" Makukha said, according to newsagency UPI. 

Gazprom chairman Alexey Miller said Ukraine was getting its natural gas through third-party suppliers in Europe, which he claimed was fraudulent. He instanced purchase of natural gas from Hungary that originated with Russian suppliers.

Ukraine has objected to a pricing scheme from Gazprom, saying it is being charged more than other customers. 

"Miller's recent comments that its prices to Ukraine are rather moderate compared to current spot prices in Europe support this view," a spokesman for ratings agency, Fitch, said last week. "We therefore believe that the prospects for a new gas price agreement ... are limited now unless accompanied by major concessions from Ukraine."

Russian natural gas supplies to Ukraine are down more than 20% percent for the first two months of the year compared to 2012, the government said.

Gazprom late last year presented Ukraine with a bill for $7 billion to cover unused gas in take-or-pay sections of a supply contract. The Ukrainian government said it has no plans to pay the charges and has sought to diversify its energy sector.

See also: President: Ukraine Will Lessen Russian Gas Imports if Price Remains Unchanged