KIEV, Ukraine, Dec. 4 (UPI) -- The director of Ukraine's national energy company Naftogaz said Russian natural gas company Gazprom agreed to a delay in the repayment of gas debts.
Naftogaz Chief Executive Officer Yevgeny Bakulin said his company reached an agreement with Gazprom to defer natural gas payments for winter fuel deliveries until early 2014 because of "problems" in the region, Russia's state news agency RIA Novosti reported Tuesday.
Gazprom in October expressed concern with Ukraine when it hadn't yet settled an $882 million bill for August natural gas deliveries. Bakulin said some of the outstanding debt had been settled and Gazprom should consider that when making future decisions about gas deliveries to Ukraine.
Gazprom, most recently in 2009, cut gas supplies to Ukraine because of outstanding debt. That left downstream consumers in Europe with a gas shortage because the bulk of their gas supplies from Russia run through Soviet-era transmission networks in Ukraine.
Ukraine in November suspended efforts to sign a free trade agreement with the European Union, sparking mass protests in Kiev. Ukraine said it was worried about the consequences of its economic ties to Russia if it pursued the measure.
The International Monetary Fund in October advised Ukraine to overhaul its energy sector to stimulate its lackluster economy.
