KIEV, Jan. 29 – Russian gas giant Gazprom on Thursday denied it had ever transferred 10 billion cubic meters of RosUkrEnergo’s natural gas stashed in Ukrainian underground gas tanks to Naftogaz Ukrayiny, only $1.7 billion of debt.

The gas, now worth at least $4.6 billion according to average European gas prices, is in the center of a dispute between RosUkrEnergo and the Ukrainian governemnt.

Gazprom’s statement comes in contrast with the position of Prime Minister Yulia Tymoshenko, who has been insisting Gazprom had sold RosUkrEnergo’s gas to Naftogaz as part of the broad gas agreement signed Jan. 20.

“Neither Gazprom nor Gazprom Export have any ownership rights on RosUkrEnergo’s gas that is kept in Ukrainian underground gas tanks,” Gazprom said in the statement.

Instead, Gazprom said it had transferred to Naftogaz Ukrayiny the right to keep and demand the payment of RosUkrEnergo’s $1.7 billion debt.

This effectively supports claims by Valeriy Khoroshkovskiy, until recently the head of the State Customs Committee, that the government had no legal reason to seize RosUkrEnergo’s gas.

Tymoshenko fired Khoroshkovskiy on Wednesday, while President Viktor Yushchenko on the same day had appointed him to the post of deputy head of SBU security service.

RosUkrEnergo, the Swiss-based gas trader in which Gazprom owns 50% stake, last week vowed to challenge Tymoshenko by filing a lawsuit with an international court if the government tries to seize the gas.

Two Ukrainian businessmen own the remaining shares in RosUkrEnergo, including Dmytro Firtash, who owns 45%, and Ivan Fursin, who owns 5% stake.

The gas in question is the key to Naftogaz’s ability to safely move 110 billion cubic meters of Russian gas to markets in the European Union.

Naftogaz’s failure to control the gas also leaves Ukraine with a shortage of about 10 billion cu m of gas in 2009 that may potentially reopen its gas dispute with Gazprom later this year.

The development is a setback for Tymoshenko, who has called the recent gas agreement with Russia as Ukraine’s and her own victory.

Yushchenko criticized the agreement as unfair for Ukraine as it had increase gas prices steeply, while keeping gas transit fees that Naftogaz charges Gazprom unchanged.

The development comes as Ukraine’s security service SBU on Wednesday warned the government against illegal confiscation of RosUkrEnergo’s gas. (nr/ez)