Ukraine's state-owned energy utility Naftogaz does not agree on prepayment of gas it receives by Russia, the country's Energy Minister Yuriy Prodan said.

Prodan added Kiev would insist to transfer instalments based on the delivered volumes.

"We have to return to the contract provisions, under which gas supply... is not prepaid," RIA Novosti quotes him as telling a Ukrainain news website.

Moscow has recently softened its tone on Kiev, agreeing the latter could pay just USD 1.451 B of its gas debt by end-2014, rather than the USD 2 B previously demanded.

Prodan believes his country is able to deliver on the abovementioned sum in the next months and to cover all its debts by March 2015, according to a statement by his Russian counterpart Alexander Novak cited by ITAR-TASS. 

But Ukraine is at the same time adamant the prepayment system introduced in June at the peak of its dispute with Russia should be revoked.

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