KIEV, Ukraine, Feb. 20 (UPI) -- Ukrainian state oil company Naftogaz warned of a new gas crisis as debt from regional utilities could hurt its relationship with Russian gas monopoly Gazprom.
"Naftogaz announces that the situation as regards paying Gazprom could worsen because of the catastrophic rise in debts of regional utility companies," the company announced.
A row between Moscow and Kiev over gas arrears and contracts prompted Gazprom to cut supplies to Ukraine in January. Europe gets a portion of its gas from Russia, though 80 percent of that transits through Ukraine.
The dispute ended with Ukraine signing onto a 10-year deal, but the terms stipulate advance payment should Naftogaz miss a payment.
Utility companies are said to owe Naftogaz some $551 million as the Ukrainian economy falters under the global recession.
The Times of London reports Naftogaz is unlikely to have the capacity to make any early payments to Gazprom, which could renew the gas crisis that hit Europe in January.
