The finance minister of Ukraine accused Wednesday the country's state-run oil and gas company of failing to pay the correct level of taxes due to the state, RIA Novosty reported.

"Naftogaz Ukrainy has failed to pay a considerable amount of taxes," Viktor Pynzenyk told a government meeting. "It has paid 42% [of the amount] compared with January-March 2005."

According to the minister, Naftogaz has also failed to pay $12 million in value-added tax. "In February-March 2006, Naftogaz did not pay a kopek of the value-added tax declared by the company," Pynzenyk said.

An investigative commission of the Ukrainian parliament that audited the books of Naftogaz Ukrainy recently said the company was on the brink of bankruptcy.


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