OREANDA-NEWS. September 12, 2012. The modernization of Ukrainian pipeline system will cost EUR 4.5 billion. That was declared by Prime Minister Mykola Azarov in an article for the Frankfurter Allgemeine Zeitung newspaper.

"The Ukrainian GTS requires capital upgrades. That is why the Ukraine's Government proposes to hand over the administration of the GTS to the international consortium consisting of Ukraine, Russia and the EU, which would ensure its transparent and equitable administration, be engaged in its modernization. The modernization of the Ukrainian GTS will cost only EUR 4.5 billion. Throughput capacity of our GTS will increase by about 30%," he said.

Mykola Azarov recalled the severe frosts in early 2012 showed that none of "Nord Stream" or "South Stream" have and can have reliable gas storages, reserves of which could have be involved in the period especially at low temperatures. He stressed that Ukraine has such storages.
The Prime Minister added the so-called gas conflicts between Ukraine and Russia in recent years have demonstrated the need for a gas-transport consortium establishing.

"The so-called gas conflicts between Ukraine and Russia in recent years have demonstrated the need for joint actions coordination in energy security issues - I mean the combination of the interests of Russia as a supplier, Ukraine as a transit country, the EU as a major customer," Mykola Azarov said.