The Ukrainian utility is
struggling to get its customers to pay for gas and the threat of a new
confrontation with Gazprom over unpaid bills adds to the trouble of
Ukraine`s economy, which is crippled by debts and the collapse in its
industrial base.
Naftogaz agreed a new gas deal with its
Russian supplier last month, ending a long confrontation and a supply
cut. However, the Ukrainian company signalled yesterday that cash was
again running out.
“Naftogaz announces that the situation as
regards paying Gazprom could worsen because of the catastrophic rise in
debts of regional utility companies,” the company said.
It is
believed to be owed 4.6 billion hryvna (£385 million) by local
distributors that have been unable to secure payment from households.
A
resumption of payment problems with Gazprom could precipitate a new
confrontation between Moscow and Kiev, leading to further supply cuts
and tougher demands from Gazprom for control over the transit pipelines
in Ukraine.
Naftogaz pays for gas monthly with one week in
arrears under the ten-year supply deal, agreed last month, but the
contract includes a clause that switches the terms to prepayment if
Naftogaz is late on a single payment.
A demand for prepayment
would be unlikely to be met by the Ukrainian utility and might lead to
further demands from Gazprom. The Russian gas company would not comment
last night on the warning from Naftogaz about payment problems.
Ukraine
has been plunged into a downward financial spiral after a collapse in
demand for its commodity exports and in its currency`s value.
The
outlook has worsened after a decision by the International Monetary
Fund to withhold the second tranche of a $16.4billion emergency loan
because Ukraine had failed to comply with the terms of the loan.
Viktor
Pynzenyk, Ukraine`s Finance Minister, resigned after a row with Yulia
Tymoshenko, the Prime Minister. Mr Pynzenyk said that he had become a
hostage to politics and he is believed to have disagreed with the
Government`s budget.
The Ukrainian Government has been riven by
the continuing rivalry between the Prime Minister and Viktor
Yushcehnko, the President.
Ms Tymoshenko shrugged off the
resignation of the finance minister, suggesting that he was not strong
enough. “The weakest are leaving their combat positions,” she said.
Ukraine is among the countries that have been hit the worst by the global financial crisis.
Its
economy is expected to contract by about 6per cent this year, according
to analysts, after years of impressive growth. Industrial output
slumped by 34.1 per cent in January, year-over-year, the biggest fall
in the country`s history.
The hryvna, the national currency,
has lost 40 per cent of its value since last autumn, because of a
drastic fall in exports. The hryvna continued to fall yesterday,
trading at 8.5 to the dollar at the foreign currency exchange, down
from 4.9 in September.
Ukraine`s stock market rose yesterday by
2 per cent after falling 8.1per cent to its lowest point in more than
four years on Wednesday.
Times Online
