KIEV, October 26 (RIA Novosti) - Ukraine's state-controlled energy company Naftogaz rejected on Monday reports of gas payment problems, saying it would pay for Russia natural gas supplied in October on time and in full.

A source in Naftogaz on Monday quoted its CEO Oleh Dubyna as saying at a meeting with Gazprom head Alexei Miller on Thursday that it was increasingly difficult for the Ukrainian energy company to make gas payments and it could be problematic for it to pay for natural gas supplied in October.

"Naftogaz of Ukraine completely rejects information that has appeared in some Ukrainian and Russian mass media on potential problems with its payment for October gas supplies. The company officially announces that it will pay on time and in full for the entire volume of gas imported in October, as it has in the previous reporting periods," the statement said.

Naftogaz paid for Russian natural gas deliveries in September on time and in full, largely using borrowed funds.

Russia, which supplies around one fifth of Europe's gas, briefly shut down supplies via Ukraine's pipeline system at the start of the year during a dispute with Kiev over unpaid debt.

The conflict was resolved in January, when Russian Prime Minister Vladimir Putin and his Ukrainian counterpart, Tymoshenko, agreed deals on deliveries to and gas transit through Ukraine for 2009.