According to Mr Volodymyr Makukha Ukraine Deputy Minister for Energy and the Coal Industry, Ukraine intends to intensify talks with the European Bank for Reconstruction and Development and the European Investment Bank concerning a loan for upgrading the gas transportation system of the country.

He said that a law on the reform of oil and gas sector of Ukraine passed by the Verkhovna Rada in April will provide an impetus for reaching agreements on lending for the reconstruction of the Ukrainian GTS and its timeframe.

He added that "The new law will serve as an incentive."

Mr Makukha said that a Ukrainian delegation lead by First Deputy Prime Minister Valeriy Khoroshkovsky was to visit Brussels in April. He said that "I think we should resolve this issue. We have taken the first hard step of adopting the law."

At the end of February 2012, Senior Banker at the EBRD Mr Paul Shapiro said that the EBRD is not prepared to provide loan resources to modernize Ukraine GTS in the absence of systemic reform in the country's gas industry. The EBRD cannot lend to a loss-making company like national oil and gas company Naftogaz Ukrainy.

Source -Interfax

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