Ukraine annually overpays $7 b for Russian gas, says premier

10:11, 04.03.2013 1 min read

Ukraine annually overpays $7 billion for gas supplied from Russia, Ukraine Prime Minister Mykola Azarov has said.

"We annually overpay $7 billion – this is about UAH 60 billion. And what is UAH 60 billion? These are, for instance, four annual volumes of road construction," Azarov said on the air of the Shuster Live talk show on March 1.

According to him, this creates pressure on the Ukrainian economy, as well as pressure on the hryvnia.

"We throw away UAH 60 billion, give it to Russia, overpaying for gas. It's a huge burden," the head of the government said.

At the same time, Azarov added that Ukraine is fully fulfilling its contractual obligations to the Russian partner, always paying for gas in full.

Azarov said that Ukraine refused to pay a bill of $7 billion issued by Russia for Ukraine's taking less gas than agreed.

"Ukraine does not owe anybody. Every day we paid and will pay on our obligations, the only exception is this suit from Russia related to this contract. We very politely replied that we do not consider the $7 billion claim to be justified and we will not pay it," said Azarov.