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Kiev in gas transit talks with Berlin

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Published: Aug. 31, 2010 at 9:39 AM
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BERLIN, Aug. 31 (UPI) -- Germany could play a role in revitalizing the natural gas transit system in Ukraine, the Ukrainian president said during a meeting in Berlin.

International lenders have pressed Kiev to overhaul its energy sector in exchange for financial aid. Meanwhile, Kiev, is struggling to improve its image as a gas transit nation following a series of disputes with Russian gas monopoly Gazprom.

Kiev and Moscow had issues over gas pricing and debt. Ukraine hosts the majority of the Russian gas headed to Europe and the poor relationship has resulted in disruptions to European gas supplies.

Ukrainian President Viktor Yanukovych met in Berlin with German Chancellor Angela Merkel to discuss Berlin's role in Kiev's gas transit system.

"We see Germany as a future partner in the reconstruction of the Ukrainian gas transit system and I have put forward today the relevant proposal," Yanukovych said in a statement by the Ukrainian government.

Merkel, for her part, said her country was ready to invest in updating Kiev's gas network.

While Kiev is courting the European community and international lenders, it is in the process of discussing a possible merger between national utility Naftogaz and Gazprom.

Kiev wants cheaper gas from Russia, which Gazprom officials said would be realized if the two companies merge.

Topics: Angela Merkel
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