Source Pravda.Ru

Chiefs of Gazprom, Neftegaz Ukraine meet on debt-settlement plans

Gazprom chief Aleksey Miller and Neftegaz chief Yury Boiko met Tuesday to discuss the Ukraine company's indebtedness to Gazprom. Gazprom's press service said the two discussed problems connected to the work of the International Consortium for the Management and Development of the Gas Pipeline System of Ukraine and questions of Ukraine's gas supplies for the midrange future.

Neftegaz Ukraine currently owes Gazprom approximately USD 1.62 billion. Under the terms of the October 4, 2001, agreement between the governments of Ukraine and Russia, USD 1.43 billion of the debt is payable in bonds.

In October 2002, Gazprom and Neftegaz Ukraine agreed to create the International Consortium on an equal basis. At a meeting of the Consortium on August 26, 2003, extension of Ukraine's gas-pipeline system in the area between Novopskov (Russia) and Uzhgorod (Ukraine) was agreed to, with the planning to be completed by August 31, 2004. At present, the necessary technical and economic documents, financing plan and structural and legal aspects of the undertaking are in preparation for the segment of the line between Bogorodchany and Uzhgorod.

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