Naftogaz Ukrainy has started to pay off its $880-million debt for gas to Russia's Gazprom, Ukrainian Energy and Coal Industry Minister Eduard Stavytsky told reporters.

"The payments already started yesterday. This will be enough to close this issue," Stavytsky said.

Gazprom CEO Alexei Miller said on October 29 that Ukraine had not settled up for $882 million worth of gas supplied in August. During an intercom meeting with Russian Prime Minister Dmitry Medvedev, Miller said, "I think it necessary to consider the question of prepayment soon, advance payments, as is envisioned in the contract," Miller said.

In commenting on the delays in payments for Russian gas, Ukrainian Prime Minister Mykola Azarov said on October 29 that the Ukrainian government had the situation under control.

Medvedev said in comments on Azarov's words, "There have been reports and reactions from Ukraine. They say that there are problems with payments for gas, but that they are not critical. But I believe there are problems with payments, and that they are critical."

Naftogaz brings together the country's largest oil and gas companies. It is the monopoly on gas transit and storage in underground storage facilities, and oil transportation through oil pipelines on the territory of Ukraine.