TYMOSHENKO, PUTIN CONSIDER IMPOSSIBLE TO MODERNIZE UKRAINIAN GAS TRANSPORT SYSTEM WITHOUT RUSSIA

Prime Minister Yulia Tymoshenko and Russian Prime Minister Vladimir Putin consider it impossible to modernize the Ukrainian gas transport system without Russia's participation, they told a press conference held on the outcomes of the meeting of the intergovernmental commission for economic cooperation.

"The modernization should be performed through joint efforts of both countries," Tymoshenko said.

Russia will supply necessary utilities, in particular, pipes, gas pumping equipment, measuring devices, and technologies, Tymoshenko said.

Putin agreed with Tymoshenko on Russia's active involvement in modernizing the Ukrainian gas transport system.

"We can't image how this could be done without taking into consideration Russia's interests," he said.

Any change in increasing Ukrainian gas transport capacity must be agreed with Russia because the required volume of gas is pumped from the Russian territory only, Putin emphasized.

If Russia and Ukraine fail to supply appropriate equipment and technologies for the Ukrainian gas transport system modernization, third parties will be attracted, Tymoshenko

Said.

As Ukrainian News reported, Russia's Gazprom gas monopoly declared that application of the Ukraine-European Union Declaration on modernizing the Ukrainian gas transportation system might revise gas export contracts and Russian and Central Asian gas extraction processes.

Following the international conference in Brussels on March 23 the Cabinet of Ministers of Ukraine and the European Commission signed a joint Declaration. According to the declaration, the Ukrainian government commits to secure independency of the operator of the gas transportation system of Ukraine, secure transparency and openness under the international standards of the borrower appointed for modernization of the gas transportation system, and provide third parties access to Ukrainian underground gas storage facilities.