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Yalta – Russia is ready to participate in the modernization of the Ukrainian gas transportation system (GTS) as it has all the opportunities for this, Russian Energy Minister Sergei Shmatko has said.

He said in Yalta on Friday that the question of modernizing the Ukrainian gas transit system had not been discussed at talks earlier held between the Russian and Ukrainian premiers.

"As far as we know, the Ukrainian side has adopted a very constructive position on this issue, stating that Russia could undoubtedly participate in the GTS modernization under the terms not worse than European companies," Shmatko said.

He said that Russia has all the opportunities for this goal – a great experience of building and operating such gas networks. Asked to comment on the details of Russia's possible participation in the project to modernize Ukraine's gas transit system, Shmatko said that "there's currently no feasibility study for the project," and added that the cost of "this project was estimated in Europe at EUR 4.5-5.5 billion."

"We think that the complete modernization of the Ukrainian gas transportation system will cost much more," he said.

Shmatko also said that Russia wants to know the conditions for its participation in this project.

"We want Ukraine's gas transportation system to function properly and are ready to spend funds for this. But it's necessary to realize at what expense. The Ukrainian side has a firm position that the GTS is the ownership of Ukraine. So this [the Russian participation] could be some projects with Naftogaz Ukrainy on equipment supplies," he said.