Naftogaz Ukrainy has rejected the $10.54 million received from Russian Gazprom in July as a supplementary payment for transit of Russian gas through Ukraine and has returned the money, Naftogaz said in a statement.

"The situation that has taken shape stems from the different interpretations between the companies concerning the definition of the rate for transit of Ukraine. Gazprom previously made an advance payment for transit services. The formula for calculating the transit fee incorporates the gas price delivered by the Russian company to Ukraine. According to Naftogaz calculations, the advance payment has not been entirely drawn down yet," the statement says.