Gazprom: Gas Injection to Ukrainian UGS Must Be "Transparent"

Gazprom has emphasised the need for gas injection into the Ukrainian underground gas storage (UGS) system to be transparent to Gazprom.

The assertion comes after a meeting between CEO of Gazprom Alexey Miller and CEO of Naftogaz Ukrainy, Evgeny Bakulin, to discuss gas supply. That meeting furthers one held at the St. Petersburg Economic Forum last week between Ukrainian Energy Minister Yuriy Boiko during which similiar matters were discussed.

In a statement released yesterday, Gazprom said both parties had discussed the need for transparency, especially in light of a recent loan made to Ukraine for this winter's gas storage.

"The meeting participants addressed the process of gas injection into Ukraine's UGS facilities to be transparent to Gazprom, taking into account the agreements that had been previously achieved as well as the advanced payment extended by the Russian party," the statement said.

Earlier this month, Mr. Miller announced that Gazprom would forward a $2 billion loan to Ukraine for gas supply for the winter, to ensure that supply to the rest of Europe remained consistent throughout the season.

The loan and the discussions are the result of accusations made by Gazprom earlier this year that Ukraine had siphoned gas intended for other countries during severely cold weather. As a result, exports to several countries, including Italy and the Czech Republic, were reduced.

Ukraine has always denied the accusation, saying that it has never taken any gas from Gazprom over its contracted amounts.