Ukraine has Paid the Bill for Russian Gas

Ukraine has paid the invoice value of $605 million for Russian gas, announced Premier Iulia Timosenko. Ukraine must accumulate gas stocks during the summer, saving it for the winter season. Stocks would allow Russian gas transit intended for the European Union.

“Today, the government paid 605 million dollars for Russian gas” stored in underground tanks, said Timosenko.

Last Friday, international financial institutions and the European Commission reached agreement with Ukraine to help this country to pay bills on Russian gas and to accumulate stocks, allowing avoiding a new gas crisis.

The agreement will allow funding of approximately 800 million dollars (570 million euro) from the World Bank and the European Bank for Reconstruction and Development in October 2009, explained a spokesman of the EC.

In addition, the IMF unblocked 3.3 billion dollars, the third installment of a credit line of 16.4 billion dollars granted to Ukraine for two years. Part of these funds will be used to help Ukraine to buy gas for the accumulation of stocks.