The Gazprom Board of Directors has viewed Ukrainian current payments for natural gas and a strategy of relations with Naftohaz Ukrainy, Itar-Tass reported.

“The company board will fulfill contracts on gas delivery to Ukraine and gas transit to Europe,” Gazprom said. The board will inform Gazprom directors of its work in September 2009.

Gazprom and Naftohaz singed two separate contracts (one on gas delivery to Ukraine and the other on gas transit to Europe) on January 19, 2009, for the period through 2019. The contracts do not stipulate middlemen services and keep the gas transit charge at $1.7 per 1,000 cubic meters of gas carried through every 100 kilometers of the Ukrainian territory in 2009. The transit charge will be market starting from January 1, 2010.

Meanwhile, the gas price for Ukraine is based on the European formula with the 0.8 discount rate. Thus, Ukraine pays $360 per 1,000 cubic meters of gas in the first quarter of this year. The price will change according to the European formula each quarter. In all, Ukraine will get 40 billion cubic meters of gas in 2009.

The contract stipulates higher payment discipline of Naftohaz. For instance, the company must repay the entire monthly delivery within seven days of the next month. Otherwise, it will have make front-up payments for the rest of the contract period.