You're reading: The Moscow Times: Ukraine Refuses to Pay $7 billion Fine to Gazprom

Ukrainian President Viktor Yanukovych said his country would not pay Russia a $7 billion fine for violations of a gas delivery agreement.

“We have refused to pay these fines, and now we are in negotiations,” Yanukovych told a national television show Friday.

In January,Gazprombilled Ukraine’s Naftogaz Ukrainy with a $7 billion bill for gas it says Ukraine did not buy in 2012, although it was obliged to do so under a so-called pay-or-take contract.

“I think we will genuinely restore normal relations with Russia in the gas sphere. We’re not losing hope,” said Yanukovych. “We need to think about how to make use of our gas-pipeline network, and no one except Russia can guarantee us a given volume of gas,” Yanukovych said.

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