Ukraine to convert IMF cash to pay for Russian gas

KIEV, Nov 10 (Reuters) - Ukraine will convert Special Drawing Rights (SDRs) from the International Monetary Fund to pay for November's Russian gas bill, Deputy Prime Minister Hryhory Nemyrya told a television channel late on Monday. SDRs are a nominal monetary unit of the IMF. In August the fund injected about $250 billion of liquidity to its 186 members and Ukraine received the equivalent of $2 billion. Ukraine has been paying around $500 million a month for Russian gas. EU leaders are concerned Kiev may fall behind its payments for Russian gas, prompting another energy crisis that in January led to supply cuts affecting hundreds of thousands in Europe.

"As for (payment for) next month -- there are funds thanks to the SDRs that we received. The next conversion should happen already this week," Nemyrya told news channel 5 Kanal.

The SDR funds are not linked to the IMF's $16.4 billion bailout for Ukraine, which has been suspended after parliament increased the minimum wage, placing a strain on the budget.

The Fund had been due to release $3.8 billion but has said it will not until the wage increases are overturned.

The government -- opposed to the increases -- has said they would cost an additional $10 billion to fund by the end of next year -- more than last year's entire gas bill. (Writing by Sabina Zawadzki)