KIEV, Jan. 28 – Fitch Ratings says OAO Gazprom's ('BBB'/Stable) intention to impose a $7 billion fine on NJSC Naftogaz of Ukraine (Naftogaz, 'CCC') for failing to purchase minimal contractual gas volumes in 2012 may either result in Ukraine ('B'/Stable) scrambling to find additional funds to support Naftogaz, or prolonged litigation.

As Fitch said in a statement, there are no immediate rating implications for Naftogaz at this time.

Naftogaz has confirmed that it received a $7 billion bill from Gazprom for natural gas volumes not taken in 2012 under the "take-or-pay" clauses contained in the 10-year gas supply agreement signed with Gazprom in 2009. In 2012 Naftogaz reduced its gas purchases from Russia to around 25 billion cubic meters (bcm) from 40 bcm in 2011. According to Gazprom, in 2012 Naftogaz's obligation under the "take-or-pay" contract clause was 42 bcm. In 2012, the average price paid by Naftogaz to Gazprom amounted to $425 per thousand cubic meters (mcm).