Naftogaz refuses to admit Gazprom's $11.4 bln bill

The Ukrainian national energy company Naftogaz Ukrainy has forwarded a letter to Gazprom to notify it of its refusal to admit a bill for $11.4 billion, which it received from the Russian company at the end of April as a claim for the volume of gas it failed to take in 2013 under a contract between the two companies, Naftogaz reported on Thursday.

The Ukrainian national energy company Naftogaz Ukrainy has forwarded a letter to Gazprom to notify it of its refusal to admit a bill for $11.4 billion, which it received from the Russian company at the end of April as a claim for the volume of gas it failed to take in 2013 under a contract between the two companies, Naftogaz reported on Thursday.

"Gazprom's claim is based on the so-called take-or-pay clause, which has long been inconsistent with market practices as the Russian gas monopoly insists on. In addition, the contract between Naftogaz Ukrainy and Gazprom does not contain a mechanism of this clause's practical implementation," it said.

Gazprom billed Naftogaz for $11.388 billion under the take-or-pay clause on April 23, 2014 for failing to take the full amount of gas stipulated by a contract in 2013. Gazprom Deputy Board Chairman Alexander Medvedev told journalists at the time that, in line with the contract, Naftogaz was supposed to take 41.6 billion cubic meters of gas but took only 12.9 billion cubic meters.

Medvedev cancels zero gas duty for Ukraine>>>

All rights reserved by Rossiyskaya Gazeta.

More exciting stories and videos on Russia Beyond's Facebook page

This website uses cookies. Click here to find out more.

Accept cookies