Image courtesy of Gazprom.

Ukraine made the first of a two part, multi-billion dollar debt payment to Gazprom Tuesday that will restore gas deliveries to the country this winter.

Russia’s Gazprom confirmed that Ukraine’s state owned Naftogaz transferred a $1.45 billion payment as part of a deal to settle Ukraine’s $4.6 billion debt.

The payment covers gas supplies delivered to Ukraine during November and December 2013.

“Gazprom received confirmation from banks of the transfer of $1.45 billion from Naftogaz for gas delivered earlier by Russia,” Gazprom spokesman Sergey Kupriyanov said.

Gazprom said deliveries to Ukraine could start up again within 48 hours of the first payment.

Naftogaz has not announced when it will pay off the remaining $3.15 billion debt.

Last week, Ukraine and Russia finally inked a deal after months of tense negotiations that resolved a long standing gas supply dispute centered around Ukraine’s $5 billion debt to Russian gas companies.

The deal, brokered by the European Commission, calls for Ukraine to pay $3.1 billion to Gazprom in two tranches by the end of the year.

The deal also requires Ukraine to pay $1.5 billion upfront for about 4 billion cubic meters of gas to be delivered throughout the winter until March 2015.

Russia’s Gazprom cut off deliveries to Ukraine in June while the two company’s disputed the debt.

Some of the funds earmarked for the gas purchases come from existing accords between the Ukraine, the EU and International Monetary Fund.

Revenues from Ukraine’s state owned gas company Naftogaz will also help pay for the new Russian gas delivers.


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