Ukraine looks to European credits to pay for gas pumped into UGS - Prime Minister

Prime Minister Yulia Tymoshenko

Ukraine counts on credits from European banks to pay for gas being pumped into underground gas storages (UGS), Prime Minister Yulia Tymoshenko has today told a press conference after the 13th meeting of the Council for Cooperation between Ukraine and the European Union.

According to her, gas, which should be pumped into UGS till November, is equally needed by the European Union, Russia and Ukraine.

This gas in gas storages is equally needed both by the European Union, because it ensures a trouble-free operation of a gas transit system in autumn-winter season, and Russia, because in summer, when natural gas consumption is reduced, Russia should have gas storages for pumping surplus volumes of gas. Ukraine also needs gas pumping, because it is necessary to accumulate gas for own consumers. I would say that gas pumping into UGS is equally important for the EU, Russia and Ukraine in equal proportion," the Prime Minister said.

She also noted that cash gaps should be covered by credit reserves to pay for gas pumped. According to Tymoshenko, it was always this way, but today, with the crisis taken into account, banks cannot quickly respond to the need of financing in such great volumes - more than USD 4 billion.

"This is precisely why a possibility is being today studied to borrow these credit resources from European banks, and both the European and the Russian parties assist in it. I would like to believe that this will happen and NJSC Naftogaz of Ukraine will be able to get short-term credit resources to cover cash gaps in autumn-winter period for gas pumping into gas storages," Tymoshenko emphasized.

At the same time, the Prime Minister specified that the issue on providing funds of the European Bank for Reconstruction and Development (EBRD) to pay for gas is being today considered, however, there is no detailed information to that effect so far. "It is early to speak about that now," she said.

All the same, she said that Ukraine is now in talks on a credit for the country only with the European party, and there are no such negotiations with Russia.

UKRINFORM