Ukraine might directly issue $490 mln to Naftogaz from budget instead of via OVGZ operations

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Ukraine might directly issue $490 mln to Naftogaz from budget instead of via OVGZ operations

KYIV. Oct 1 (Interfax) - The Cabinet of Ministers of Ukraine has proposed that the Verkhovna Rada (parliament) support Ukraine's national oil and gas company Naftogaz Ukrainy with UAH 3.9 billion ($490 million) worth of direct budget financing instead of replenishing its charter capital with OVGZ domestic bonds of the same value in 2012.

This proposal is contained in draft law #11274, registered in the parliament on October 1.

These funds might be issued to Naftogaz as compensation for the difference between the procurement cost of imported Russian gas and the tariff at which the state-owned holding sells it to utilities enterprises.

The official exchange rate on October 1 was UAH 7.993/$1.