Ukrainian energy company Naftogaz said it paid just more than $1 billion to Russian gas company Gazprom in order to settle its October bill.
Naftogaz said it transferred $1.004 billion to Gazprom for October. The company said it pays about $300 per 1,000 cubic meters of natural gas it gets from Gazprom, which figures in a $100 per unit volume discount.
"National joint-stock company Naftogaz of Ukraine monthly, timely and in full pays Gazprom for natural gas supplies," the company said in a statement.
Naftogaz under the terms of a 2009 gas deal with Gazprom must pay its bill by the first week of every month or face stiff penalties and supply disruptions.
Ukraine transmits about 80 percent of the Russian natural gas bound for European consumers through Soviet-era pipelines. Gazprom in early 2009 shut off gas to Ukraine because of contract disputes, leaving European consumers in the cold for weeks.
That decision prompted a race to diversify energy networks, with Russia pursuing its Nord and South Stream natural gas pipelines while Europe looked to break Moscow's grip on the regional energy sector through projects included in its so-called Southern Corridor.
Kiev sentenced opposition leader and former Prime Minister Yulia Tymoshenko to seven years in jail for abuse of power in connection with the deal that brought a resumption to gas deliveries. Her supporters say the charges are politically motivated.