Ukraine's PM says Naftogaz finances safeguarded

KIEV, March 28 (Reuters) - Ukrainian Prime Minister Yulia Tymoshenko said on Friday the government would safeguard the finances of state energy firm Naftogaz, in debt to Russia's Gazprom and risking default on a $500 million Eurobond.

Analysts have had doubts over Naftogaz's financial health after it failed to pass on steep price rises in Russian gas imports to domestic consumers and its revenues suffered further after a transit intermediary was introduced in 2006.

"We can clearly say that Naftogaz has been practically pulled away from the brink of technical bankruptcy. All financial resources for Naftogaz will be provided," Tymoshenko told a news conference.

The government in January threw a lifeline of $2.4 billion in the form of sovereign guarantees.

But President Viktor Yushchenko said earlier on Friday that Naftogaz "has never been so close to bankruptcy as it is today", according to media travelling with him outside Kiev.

Naftogaz was required to submit last year its 2006 audited accounts to the holders of its 2009 Eurobond <UA020207868=> and has missed several deadlines, managing each time to convince investors to set a new one. The latest is on Monday.

The company was not immediately available for comment.

It also owes Gazprom for gas imported at the beginning of the year. Yushchenko says the debt is $2 billion, Tymoshenko says $900 million.

Ukraine for most of this year has been quarrelling with Russia over the price, volumes and conditions of gas imports in 2008 and reached a tentative political agreement this month. But a contract is yet to be signed.

"We will balance Naftogaz's budget in the near future," Tymoshenko promised, but provided no further details. (Reporting by Natasha Zinets; writing by Sabina Zawadzki; editing by Mike Elliott)