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Ukraine's Naftogaz Says $1.65 Billion of Gazprom Debt Paid

Gas cleaning system pipes are pictured at Romny gas compressor station in Sumy region, Ukraine.

KIEV — Ukrainian state energy firm Naftogaz said Tuesday it had transferred $1.65 billion to Russia's Gazprom — the second tranche of a debt repayment agreed under a deal that saw Moscow resume gas supplies to Ukraine earlier this month.

In November, Moscow, Kiev and the European Union reached a deal under which Russia would restart flows to Ukraine over the winter in return for Ukraine paying $3.1 billion in two tranches by the end of the 2014.

Russia started pumping gas to Ukraine in early December after halting them six months ago due to the dispute over prices and unpaid debts.

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