World Bulletin/News Desk
Ukraine's Naftogaz repaid $1.45 billion to Russia towards its debt for the period of November-December 2013, according to Gazprom.
Ukraine fulfilled the agreement through its recent payment to release Russian natural gas. It is expected that Ukraine will pay off its total debt of $3.1 billion to Gazprom by the end of 2014.
Russia announced that further natural gas supplies will be in orchestrated in a "down payment" method to Ukraine after the crises with the country. Ukraine will have to make a prepayment for the amount of natural gas that it needs from Russia until the country pays off all of its debt.
Russia and Ukraine reached an agreement on October 31 in natural gas negotiations under the EU's mediation. The deal stipulated that Ukraine pay its debt with a down payment of $1.45 billion and a further $1.65 billion at the end of the year.
Under the terms of the agreement, the price of natural gas is to be reduced in Ukraine's favor. The cost which was set at $385 per thousand cubic meters was decreased to $378 per thousand cubic meters until the end of 2014 and during the first quarter of 2015, Ukraine will pay $365 per thousand cubic meters.
Ukraine will determine the amount of natural gas it will buy through its down payment system.
Last Mod: 05 Kasım 2014, 17:04