Ukrainian state energy firm Naftogaz has paid Russia's Gazprom $1.063 billion for October gas supplies, Naftogaz said on Friday.
Cash-strapped Ukraine is trying to renegotiate its current gas deal with Russia under which it is paying $253 per 1,000 cubic metres this quarter.
But Russia has indicated that would require giving Gazprom a stake in Ukraine’s transit pipeline system — something Kiev has not been willing to do.
Gas price disputes between Moscow and Kiev have in the past disrupted shipments of Russian gas to Europe, which mostly pass through pipelines across Ukraine.
Last month, Ukrainian Prime Minister Mykola Azarov said after talks with Russian Prime Minister Vladimir Putin that Russia could cut the price of gas it sells to Ukraine to $230-235 in the first quarter of 2011.
But Russian officials said a complete overhaul of the existing deal had yet to be agreed.
