Ukraine Moves Toward Gas Debt Compromise with Russia - WSJ.com

Ukraine Moves Toward Gas Debt Compromise with Russia - WSJ.com:



"Ukraine took a step toward compromise over its huge gas debt to Russia Thursday, approving a measure that would allow the state gas company Nafotgaz to pay off $2 billion to Moscow this week as agreed in a tentative deal mediated by the European Union.



Kiev still hasn't officially confirmed it will make the payment, despite Moscow's threat to demand prepayment for future supplies starting next week, a move that could lead to a cutoff of shipments. Officials from Ukraine, Russia and the EU are scheduled to meet in Berlin Friday for more talks on a compromise.



The Ukrainian government on Thursday formally increased the charter capital of Naftogaz, a technical step necessary to allow the government to transfer the money to the company to make the payment. However, a Naftogaz spokesperson couldn't immediately comment on whether the payment would be made.



Moscow and the EU have pushed Kiev to pay off $2 billion of the debt--which Russia says now totals $4.5 billion--this week before beginning discussions on a lower price. Ukrainian officials have said they will only agree to begin repaying the debt if Moscow agrees to lower the price of gas, at least for the duration of negotiations on a permanent pricing compromise."



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