January gas contract holds, Kiev says

MOSCOW, Sept. 9 (UPI) -- The Ukrainian government will honor the January natural gas contract with Moscow as Kiev touts its preparedness for the heating season, ministers said.

Bohdan Danylyshyn, the Ukrainian economic minister, told the Russian-language business daily Vedomosti the nine-month-old agreement that settled a January gas row still held firm.

"Ukraine intends to honor the terms of the contract," he said.

His comments come as Ukrainian Prime Minister Yulia Tymoshenko made a series of announcements regarding natural gas and the state utility Naftogaz.

Tymoshenko said Tuesday that her country "for the first time in 18 years" has stored enough gas for the fall and winter heating season, noting Naftogaz was able to meet its payment deadline for gas from Moscow. Kiev, she added, would pay for only the gas it consumes, not a pre-determined volume.

Russian President Dmitry Medvedev, for his part, said energy giant Gazprom should halt its advance payments for gas transit fees through Ukraine and stick with the original deal set in January, RIA Novosti reports.

Russian gas monopoly Gazprom cut gas supplies to Ukraine briefly in January due to gas debts and contract disputes. That row left Russia's gas customers in Europe starved for gas as 80 percent of its supplies run through Ukrainian territory.

The January contract that settled that dispute placed strict gas volume and monthly payment deadlines on Ukrainian gas utility Naftogaz.