Ukrainian Prime Minister Yulia Tymoshenko said on Friday that intermediary Rosukrenergo owed Russian gas giant Gazprom $2.2 billion and proposed settling the debt by dipping into gas stored in the ex-Soviet state.

"Rosukrenergo has $2.2 billion in debts to Gazprom...this is commercial debt," Tymoshenko told a news conference a day after holding talks in Moscow on 2009 gas supplies.

"We see a solution -- taking 11.2 billion cubic metres of gas now in Ukrainian storage areas and belonging to Rosukrenergo, pay for that gas and at the same time eliminate the debt between Rosukrenergo and Gazprom."

Reuters