Anatoly Podmyshalsky, head of Gazprom's department for work with CIS countries, told journalists in Kyiv on Thursday that the companies are currently looking at different options for the reduction in supplies. Ukrainian national oil and gas company Naftogaz has officially asked Russia's Gazprom to reduce the volume of natural gas it exports to Ukraine to 33 billion cubic meters (bcm) in 2010 from the 52 bcm initially envisioned in next year's contract.

Anatoly Podmyshalsky, head of Gazprom's department for work with CIS countries, told journalists in Kyiv on Thursday that the companies are currently looking at different options for the reduction in supplies.

The 'take or pay' contract between Naftogaz and Gazprom allows for purchases to be 20% higher or lower than what the contract initially envisions without any sanctions being applied.

Naftogaz wants to cut imports to 33 bcm from 52 bcm while retaining the 20% clause, which means the company would import 27 bcm in 2010, he said.

Podmyshalsky noted that, at Naftogaz's request, Gazprom made an advance payment of $2.15 billion this year for part of the gas transited across Ukraine.

In addition, Naftogaz has yet to repay $250 million of an advance it received in 2004, he said.

Thus, he said, Gazprom has already paid for transit services for all of 2009 and partially for 2010.