Ukraine, Gazprom in talks on gas 'debt'

MOSCOW, Oct. 3 (UPI) -- If it’s the end of the year, it must be a gas dispute between Gazprom and Ukraine.

The Russian gas monopolist said this week it would cut supplies to Ukraine over more than $1 billion in unpaid bills from Kiev unless the debt was settled this month. On Wednesday Ukrainian First Deputy Prime Minister and Finance Minister Mykola Azarov denied any money was owed to Gazprom.

Sergei Kupriyanov, a Gazprom spokesman interviewed by Russia’s Channel One TV, said: “Today the Ukrainian side said that there is no debt for gas supplies. If we are speaking about a debt of the Ukrainian state, then this is true. However, the debt of business entities for gas supplies this year is an objective fact that cannot be denied by anyone.�

Officials from Ukraine and Gazprom met in Moscow Wednesday over the issue.

The spat seems to be almost a repeat of the last two years when Gazprom threatened to cut off supplies to Ukraine over a pricing dispute. Two years ago Gazprom carried out its threat, thereby reducing supplies to Europe and raising fears of Moscow using its energy resources as a political tool. It resumed supplies once gas prices were raised closer to international standards.

Much of the dispute could be rooted in politics. Ukraine is mired in an electoral impasse that gives a pro-Western bloc a slight edge over its pro-Moscow rivals. In the past, the party of Prime Minister Viktor Yanukovych, who is seen as close to Moscow, has been able to get better deals from Gazprom.