Energy

Gazprom says delays gas prepayment system for Ukraine

Alexei Miller, the head of Russia's top natural gas producer Gazprom, said on Monday that the company has postponed moving to prepayment mode for gas supplies to Ukraine to June 9 after Kiev started reducing its debt.

Gazprom also confirmed that Ukraine redeemed $786 million of gas debt. The Russian state-controlled company had warned earlier it may halt gas supplies to Ukraine on June 3 if Kiev fails to pay off its gas debt in full.

An oil and gas processing plant near Salym, Russia
Andrey Rudakov | Bloomberg | Getty Images

Miller also said that Ukraine should pay for May gas deliveries before June 9 and that switching to prepayment would depend on Kiev's full redemption of the $2.24 billion of debt for gas supplied before April 1.

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Gazprom has threatened to cut off gas supplies to Ukraine if Naftogaz fails to pay some of its $3.5 billion debt for imported gas.

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