Cabinet of Ministers of Ukraine : Prime Minister will personally control the modernization GTS

Ukrainian Prime MinisterMykolaAzarovkeeps under personal control a project for modernization ofthe domesticgas transportation system.He said thison Monday, January 28, 2013during a meetingwith the German companyFerrostaaldelegation.

"Thankyou for your supportof ourposition onupgrading the gas transportation system.Right now this isespecially important for us,at a time whenone side gas agreementwith Russiaacts",MykolaAzarovsaid.

The Prime Minister stressedthat the modernization ofthe GTS, which UkrainestartedwithDeutsche BankandFerrostaal-a promisingproject, whichwill be supported by theGovernment.

"Modernizationof ourgas transportation systemis extremelyrelevant.In this respect,implementation of the pilot project on themodernization of the equipmentat the Barbooster station of the Soyuz pipeline andthe Deutsche Bank's participation in the projectis important»,MykolaAzarovstressed.

The PM recalledthatthe domesticGTS isreliable and cheaproute forhydrocarbonsto Europe.Ukrainealsohas underground gas storage facilities, which allow during peakwinterloadsto increase the supplyand to ensurestable revenuesof energy to Europe, he added.

MykolaAzarovalso said thatUkraineis interestedin natural gas suppliesfrom Europe, which is now considerablycheaper than the Russian gas. According to him,Ukrainecanreceive gasfrom Europe on muchbetter terms thanfrom Russia: there are norequirementof "takeor pay"in Europeancontractsand there are nopenaltiesfor arrears ofgas.The PrimeMinisterrecalled thatUkrainehas alreadyhad a positive experiencefor the purchase ofnatural gasin the EU.

Recall,December 11, 2012the Affiliated CompanyUkrtransgasandDeutsche Banksigned an agreement fora creditline of $53.5 millioneurosto modernize theBarbooster station of the Soyuz pipeline.

With the funds fromthe loanit will be extendedthe Barstation's operationfor 15 years, which will reduce by 28%the volume ofnatural gas andincrease the efficiency ofgas compressors.

The funds will berepaidat cost of cuts in spending of Affiliated CompanyUkrtransgasforfuel gas.The crediting periodis 10years and 9 monthsfrom the date oftransfer of sums.The German sideplans to finance85%of the project cost, and Affiliated CompanyUkrtransgas- 15%.