Ukraine to settle gas debt with Russia

MOSCOW, Nov. 26 (UPI) -- Russian energy giant Gazprom and Ukrainian state-owned Naftogaz agreed to a settlement calling on Kiev to settle a portion of its debt by Dec. 1.

Gazprom Tuesday said it filed a lawsuit at an international arbitration court in Stockholm to force Ukraine to settle $2.4 billion in gas debt.

Alexei Miller with Gazprom and Oleg Dubina with Naftogaz negotiated an agreement whereby Naftogaz settles its debt from September and portions of the October supplies as part of an Oct. 2 bilateral agreement, the Russian daily newspaper Kommersant reported Wednesday.

Kiev said Moscow was asking for payment for gas held unused in underground storage facilities, while Moscow said it was still waiting for outstanding fees.

The Ukrainian government said the annual price for gas in 2009 should be no greater than $100 per thousand cubic meters per year, which is considerably less than the average price, $400, for Europe.