PJSC Ukrnafta has appealed to the State Fiscal Service of Ukraine with a proposal to repay the company's tax debts at the expense of the rights to 2 billion cubic meters (bcm) of gas in the underground gas storages facilities (UGS) of PJSC Ukrtransgaz, the press service of Ukrnafta has reported.

The company proposes that the Fiscal Service formalize as tax lien the rights to 2 billion cubic meters of gas, which Ukrnafta extracted in 2006 and pumped into the underground gas storage facilities of Ukrtransgaz.

"The cost of the said volume of natural gas, in accordance with the prices established by the National Commission for Energy, Housing and Utilities Services Regulation (NCER), is UAH 13.6 billion, which fully covers the amount of tax arrears [more than UAH 10.2 billion]," reads a statement.

Ukrnafta noted that the Higher Economic Court of Ukraine on May 19, 2014 obliged Ukrtransgaz and Naftogaz Ukrainy not to prevent Ukrnafta from implementing the right of ownership of these 2 billion cubic meters of natural gas in storage.