Predictably, Naftogaz Ukrainy CEO Aleksei Ivchenko has reacted angrily to Turkmen claims that Kiev owes money to Ashgabat for gas deliveries. In a press conference on Monday, Ivchenko told reporters sought to present Ukraine’s position over the controversy:

“Our outstanding debts are zero. … There are no grounds for insulting Ukraine.”

Ivchenko specified that Kiev did owe Turkmenistan goods worth $75 million for previous gas deliveries. He also claimed that the delivery of these materials had not been carried out as the Turkmen government had failed to specify which goods they wished to receive. Ivchenko also accused Ashgabat of failing to fulfil deliveries for January 2006 as stipulated by the contractual agreement.
More conciliatory noises came from Ukrainian Prime Minister Yury Yekhanurov, who said that Ukraine and Turkmenistan have resolved the disagreements. In a Thursday press conference Yekhanurov said that:

“All the misunderstandings that existed several days ago have been solved.”

Naturally, the outcome of this dispute has ramifications for energy costs for Ukraine, though it is far from clear how much of a role Turkmen gas paid in arriving at the $95 per 1,000 cubic metres that Kiev currently pays. As a recent Jamestown article notes, the price hike can hardly have come as a surprise to Yushchenko and his government. As Jamestown suggested, Ukrainian officials have

“… claimed that the $95 price was fixed for the period 2006-2010 in the agreements signed with RosUkrEnergo, even as the documents made clear that this price only applies for the first half of 2006.”

RosUkrEnergo’s exact role in this drama is very much at the heart of whatever outcome is eventually arrived at. On the face of things it is a middle point between Russia’s Gazprom and Naftogaz Ukrainy, but it is unclear why any company would be prepared to burden itself with the real possibility for gigantic Ukrainian debts. The lack of transparency of this company creates the impression that it is either a political smokescreen or a slush fund for handouts to corrupt state officials and politicians.