Court obliges Ukraine to pay UESU debt to Russia.

By bne IntelliNews September 20, 2012
The Kyiv Economic Court has ordered the government to repay UAH 3.113bn of the debts United Energy Systems of Ukraine (UESU) owes to the Russian Defence Ministry, Judge Anatolii Ivchenko has announced at a session. The Russian Defense Ministry demands to collect from the government of Ukraine UAH 3.239bn for the UESU corporation debts to Russia. The Court has arrived at a conclusion that the 1996 letter from then prime minister Pavlo Lazarenko to the Russian Government on settlement of the matter of gas supplies to Ukraine was the Ukrainian Government's official guarantee of supplies of materials and equipment by UESU in discharge of indebtedness for delivered gas. The Court believes, the Ukrainian PM was authorized to grant such guarantees at his sole discretion. In 1995, Russia's Gazprom and UESU concluded an agreement for supply of Russian natural gas in 1996 for Ukrainian consumers in exchange for supplies of materials and equipment by UESU to Gazprom's enterprises and organisations. In the framework of this agreement, the UESU and Russia's Defence Ministry concluded a general agreement in 1996, under which the UESU had to pay for materials and equipment supplied to the Ministry instead of payment for them from Russia's national budget. But the UESU underpaid delivery of specified quantity of material and technical resources.

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