EBRD Prepared to Help Modernise Ukraine's GTS If Reforms Are Made

The European Bank for Reconstruction and Development (EBRD) has said it is ready to help Ukraine modernise its gas transport system but will require the country to meet certain conditions set out in a Memorandum of Understanding (MoU).

As part of the signed MoU, Ukraine must reform its gas markets and restructure national gas company Naftogaz, the EBRD Director for Ukraine said today.

"EBRD is committed to assisting Ukraine with the modernisation of the country’s gas transit system under the terms of a March 2009 Memorandum of Understanding (MoU) signed by the European Union, the European Investment Bank (EIB), the World Bank, the EBRD and Ukraine," André Küüsvek said.

"Among the requirements of the MoU is reform of the gas markets and the comprehensive restructuring of NAK NaftoGaz."

A statement from the ERBD said today that the EBRD and EIB are working on a $308 million, which will facilitate emergency repairs to the Urengoy-Pomary-Uzhgorod export pipeline, which will be available to Ukraine by the end of 2012. However, this loan will only be available for the "urgently required" repairs should the Ukrainian authorities "take real steps aimed at implementation of the agreed reform agenda", the statement said.