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Coming Up With the Cash
Kiev Keeps Gas Prepayments Small

One day before its prepaid gas supplies would have run out, Ukraine’s state-owned gas firm Naftogaz paid its Russian counterpart Gazprom $15 million, enough to keep supplies flowing for five more days. Reuters reports:

Russian natural gas exporter Gazprom said on Thursday that it had received a $15 million prepayment from Ukrainian state energy firm Naftogaz following warnings supply could be cut off if no payment was made.

The payment is enough for 45.6 million cubic metres of gas, or about five days’ supply at current rates of delivery, Gazprom said by e-mail.

Ukraine’s energy minister said earlier this week that Kiev intended to keep its prepayments small, a policy that would appear to be motivated by necessity rather than strategy. Ukraine’s economy is in shambles, its currency is tanking, and with Gazprom insisting on prepayment it’s scrounging around for enough money to keep the gas flowing and homes heated.

Kiev will be crossing its fingers for a swift end to winter–it can’t afford to stay warm much longer.

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