KIEV, November 15 (Sputnik) — European Bank for Reconstruction and Development (EBRD) may allocate funds for modernization of the Ukraine's gas transportation system before the end of 2014, Vice-President of the European Commission (EC) in charge of the Energy Union Maros Sefcovic said Saturday.
"The European Bank for Reconstruction and Development is ready to provide financial aid in a form of a loan on very favorable terms. The aid may be granted to the Ukraine as early as this year," Sefcovic said in an interview with the Ukraine's First National TV channel without providing any specific numbers.
According to Sefcovic, a meeting between the Ukrainian experts and the EBRD representatives should be held prior to making a final decision on the loan.
Sefcovic also mentioned that two groups should be working on modernization of the Ukrainian gas transportation system – the first group dealing with reforms in the gas sphere and the second group working on the electricity development strategy.
According to the statement released by EBRD on November 11, the Ukraine’s pipeline upgrade and modernization project consists of the replacement of four sections of the Urengoy-Pomary-Uzhgorod gas pipeline, which is “a key part of the Ukrainian gas transit system ensuring deliveries of gas from Russia to Europe and reverse imports of gas by Ukraine from the European Union countries,” as well as the modernization of the Romny gas compression station.
The project’s total cost is estimated at $600 million with up to $400 million to be provided by international financing institutions. EBRD is planning to allocate up to $200 million of this sum to the Ukrainian national energy giant Naftogaz.