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Ukraine to challenge Gazprom

Lawsuit is "in the final stage," justice minister says.

By Daniel J. Graeber
A Ukrainian worker operates at the natural gas pipeline from Russia to Poland in Boyarka town 15 miles from Kiev. (UPI Photo/Sergey Starostenko)
A Ukrainian worker operates at the natural gas pipeline from Russia to Poland in Boyarka town 15 miles from Kiev. (UPI Photo/Sergey Starostenko) | License Photo

KIEV, Ukraine, May 30 (UPI) -- The drafting of a lawsuit against Russian energy company Gazprom is in the final stages, Ukrainian Justice Minister Pavlo Petronko said.

Ukraine has a Friday deadline to settle a debt the Russian energy company says is for $2 billion. No payment means no gas deliveries to Ukraine starting in June, Gazprom officials said.

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The deadline coincides with a second round of trilateral energy talks between Ukrainian, Russian and European officials. Under a proposal, Ukraine would settle its debt and offer another $500 million by June 7.

Ahead of the Friday talks in Berlin, Petronko said Ukrainian energy company Naftogaz sent a pre-arbitration statement to Gazprom in a challenge to its contractual relationship.

"The drafting of the lawsuit is in the final stage," he said in an interview broadcast Thursday with RBC-Ukraine.

Gazprom said Ukraine may have to pay in advance for natural gas if a deal isn't reached.

Russia meets about a quarter of the European gas needs, though most of that runs through the Soviet-era transit network in Ukraine.

The crisis is a repeat of contractual rows in 2006 and 2009, but has escalated since political upheaval in Ukraine last year.

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The World Bank said Wednesday the situation with Ukraine could slow the Russian economy.

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