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Gazprom's prepayments are critical for Naftogaz, which continues to rely on gas transit revenues and support from the Ukrainian government to offset losses on domestic gas sales due to low government-set tariffs. Since the beginning of 2012, Gazprom has made USD3.5bn of transit fee prepayments to Naftogaz, which the Ukrainian company used to finance purchases of Russian gas, including that for storage. But Gazprom said recently that the latest USD1bn payment will cover the period until the start of 2015.
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