KIEV, Ukraine, July 8 (UPI) -- With July gas purchases expected to decline, Ukraine's national energy company Naftogaz said it paid around $860 million to Gazprom to settle its June debt.
Naftogaz under the terms of a deal that ended a 2009 disruption over debts with Gazprom is obligated to pay its debt during the first week of each month or face stiff penalties.
The company said it paid Gazprom on time for its June natural gas usage, the Interfax news agency reports.
Ukrainian opposition leader and former Prime Minister Yulia Tymoshenko is under investigation in connection to the 2009 gas deal. The government of her rival, President Viktor Yanukovych, claims the deal cost the Ukrainian economy dearly.
Gazprom officials said Kiev could get a better deal on gas only through a merger with Naftogaz. Naftogaz, however, is expected to scale back the amount of natural gas it purchases from Gazprom starting this month.
Kiev, meanwhile, is considering trade relations with its European partners while at the same time eying its vast shale natural gas reserves.
Opposition leaders in Kiev said dealing with Gazprom puts the country firmer in the grasp of the Kremlin.
