Only corporate debts for Ukrainian gas consumption totaling 100 million hryvnas remain unresolved, government spokeswoman says

nd the Russian based Itera international group of company's president Igor Makarov have settled the issue of the debt owed for gas supplies to Ukrainian power generating companies during negotiations on Tuesday, November 14, said Prime Minister Viktor Yushchenko’s spokeswoman Natalia Zarudna, Ukrainian News reported .

Zarudna did not, however, state how the issue was settled.

According to Zarudna, Yushchenko and Makarov agreed that Itera would not suspend gas deliveries to Ukrainian power generating companies.

"The issue of Ukrainian gas consumers' corporate debts for the first quarter of this year and for the autumn-summer period has been resolved. As of the end of this week, only corporate debts totaling Hr 100 million will remain unresolved," Zarudna said.

According to Zarudna, Yushchenko and Makarov agreed that Itera would deliver natural gas to power stations in quantities corresponding to the amounts paid by them.

Itera’s president recently sent a letter to President Leonid Kuchma stating that Itera would stop supplying gas to thermoelectric power stations from November 15 unless they pay their debts, as earlier reported.

According to information from Itera, Ukrainian power generating companies owed $73 million for gas as of October 20, including $17.2 million for deliveries made in the January-March period.

Ukraine’s Fuel and Energy Ministry has admitted that Ukrainian companies used natural gas belonging to Itera without authorization in October and have still not formalized the purchase of this gas.

According to estimates by specialists, the volume of gas used without Itera's permission was around 500 million cubic meters.

As reported earlier, Itera stopped gas supplies to thermoelectric stations on November 1 but resumed deliveries the following day at a rate of 22.5 million cubic meters a day.

Ukraine’s power companies buy natural gas at $45 per 1,000 cubic meters, with payment of $5 of the cost of every 1,000 cubic meters deferred for four months, according to the report.