NJSC “Naftogaz of Ukraine” Settlement of Accounts for Imported Natural Gas in 2008

NJSC “Naftogaz of Ukraine” believes that the claims regarding the Company’s past-due debt to RosUkrEnergo AG (supplier of natural gas to Ukraine) are incorrect, inadequate and considerably complicate current negotiation process between NJSC “Naftogaz of Ukraine” and Gazprom JSC on entering into contracts for natural gas supplies to Ukraine and transit thereof by Gazprom JSC to European consumers in 2009.

Particularly, NJSC “Naftogaz of Ukraine” pays for the consumed imported gas to RosUkrEnergo AG which, in turn, transfers the funds to Gazprom fully owned subsidiary Gazprom-Export. Thus, Gazprom turns out to be the final recipient of funds paid by NJSC “Naftogaz of Ukraine” for imported gas. Based on some complications in the settlement of the accounts, caused by considerable negative influence of current financial crises; between NJSC “Naftogaz of Ukraine” chairman, Mr Oleg Dubyna, and the chairman of Gazprom, Mr Alexey Miller, the following agreement has been archived: the monthly payment for natural gas imported to Ukraine shall be made before the end of the next consecutive month.

In view of the above, for the current year, NJSC “Naftogaz of Ukraine” has fully met its financial obligations as to the payment for the imported gas for the period from January to October inclusive. Presently, the Company has been making current transactions for natural gas imported in November 2008.

Regarding the statements made by RosUkrEnergo AG representatives to apply punitive measures and penalties for so called “overdue debt”, NJSC “Naftogaz of Ukraine” officially states that given financial obligations can be discussed only upon termination of the contract, execution of statement of accounts and, probably, consideration of claims. Therefore, the attempt to present the punitive measures and penalties as the Company’s existing debt is somewhat distorting the real facts.

Moreover, NJSC “Naftogaz of Ukraine” has repeatedly brought to RosUkrEnergo AG attention the facts of its systematic failures to meet the payment deadlines for the services rendered for the transit of natural gas through Ukraine, gas storage and pumping of gas out of Company’s underground storage facilities. NJSC “Naftogaz of Ukraine” demands from RosUkrEnergo AG to duly comply with the contract’s terms and conditions.

Hereby NJSC “Naftogaz of Ukraine” once again requests Gazprom not to pile on the pressure around the ongoing negotiation process between NJSC “Naftogaz of Ukraine” and Gazprom JSC as well as not to convert purely economic relations of the business entities into the political sphere.

Press-Centre NJSC “Naftogaz of Ukraine”

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