5 Aug 2009 16:21

Ukraine pays in full for July Russian gas, says Tymoshenko

Kyiv, August 5 (Interfax) - Ukraine has paid $605 million for Russian gas supplied in July, Ukrainian Prime Minister Yulia Tymoshenko said.

"The government has paid for gas pumped into storage facilities today, ahead of schedule. We've transferred $605 million and have paid in full for gas originating in Russia," she said at a press conference in Kyiv on Wednesday.

Tymoshenko said that Ukraine had found the funds required to make payments for Russian gas supplied in July partly by refunding VAT to the state gas firm Naftogaz.

"The state had debts to Naftogaz in the form of VAT on exports. You know that Naftogaz [offers] such a service as gas transit. We returned this VAT and have paid Russia in full [for gas supplied in July]," she said.

"We'll have 27 billion cubic meters of gas in our underground storage facilities for the first time in recent years, and this will protect our energy independence," Tymoshenko said.