Volume 3, issue #16 - 09-06-1998

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Ukraine drawing up agreement on Gazprom debts

Apr. 9, 1998 Ukraine is drawing up a draft agreement on the deliveries of Russian gas for the period up to 2007, Chairman of the Ukrainian State Oil and Gas Committee Mikhail Kovalko told. He noted that 15.3 billion cubic metres of gas, costing $ 950 million, were delivered to the population of Ukraine in the first quarter of 1998, but money was paid only for 13.5 % of the consumed fuel.
Kovalko said that Ukraine was planning to foot all the bill for Russian gas by the summer of 1998. Timetables for the settlement of the debt were drawn up. The biggest debtors include the "Motor Sich" Company, the "Single Power System of Ukraine", "Intergaz", "Sigma" and "Ukrzarubezhneftegaz". He noted that their total debt amounted to $ 462 mm. The debts of "Ukrgazprom" add up to $ 483 mm.