KIEV, Ukraine, Dec. 27 (UPI) -- Moscow and the European government should upgrade Ukraine's natural gas transit system before pursuing new pipelines, the Ukrainian president said.
Russian gas monopoly Gazprom most recently in January 2009 cut gas supplies to Ukraine because of contract disputes with state utility Naftogaz. Russia sends about 80 percent of its gas bound for Europe through Ukraine and the dispute sparked a push to diversify regional transit networks.
Moscow is pushing for its South Stream gas pipeline system through southern Europe as an alternative, though Ukrainian President Viktor Yanukovych suggested South Stream wasn't the best option, Russia's state-run news agency RIA Novosti reports.
"We should create all conditions, provide all guarantees, technical and political, to Russia and the EU that Ukraine is a reliable (energy) partner," he was quoted as saying.
Naftogaz officials said it would be cheaper to upgrade the Ukrainian gas transit system than to build new pipelines.
Gazprom has eyed a merger with Naftogaz on the premise that it would strengthen regional energy security. Opposition leaders in Kiev complain any deal would be a sign the pro-Russian government was moving too close to the Kremlin.
