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Gazprom makes up with Naftohaz

Russian gas monopoly Gazprom has settled a dispute over gas supplies with its Ukrainian counterpart, Naftohaz Ukrainy.

Under the agreement, Naftohaz has been given 2.55 billion cubic metres of gas as part-payment of transit fees for Russian gas this year, while Gazprom will sell 5.25 Bcm of gas stored underground in Ukraine to RosUkrEnergo. The gas will be delivered by Naftohaz Ukrainy.

The two amounts add up to the quantity of gas that was at the centre of the disagreement, a Reuters report said.

The agreement between the two companies also said that the transit of Russian gas though Ukraine will be increased by 8 Bcm in 2005 and by between 8 Bcm and 11.5 Bcm next year.

Gazprom had unilaterally deducted 7.8 Bcm of gas from fees it pays Naftohaz for transit of supplies to European customers last month after claiming that the same amount of gas had "disappeared".

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