The amount of debt owed by the two regions to Ukraine for energy supplies is increasing rapidly and has been estimated at 11 billion hryvnia, or $410 million. Continuing to supply gas to the two regions would cost Naftogaz $4 million (at current import prices), creating additional pressure on its budget. Thus, continuing supplies of gas to these regions “for free” would put at risk the receipt of extended financing from the International Monetary Fund – since one of the preconditions for receiving finance is to end Naftogaz’s deficit by 2017.
Read Full Article »
