Russian gas giant Gazprom is to increase its investment programme for the next year to $32billion – as it chases the Ukraine for an overdue £4billion gas bill.
Earlier this year the Ukrainian government rejected a £4billion bill from the state-owned exporter.
The row has flared up again, with Gazprom demanding payment for August’s natural gas supplies. The company had given Ukrainian authorities until October 1 to pay up the overdue amount, but has yet to receive payment.
It follows disputes between the two countries in 2006 and 2009 over the price of gas, with Russia halting exports not just to its neighbour but the rest of Europe during the dispute.
Ukraine pays about $400 per 1,000m3 for its gas supply from Russia, where most of its imports come from. The country’s utilities firm Maftogaz said it had enough supplies to get through the winter.
Meanwhile Gazprom is to up its investment programme for the year by 46 percent, after increasing borrowing by more than almost double to $7.2billion.