You're reading: Ukraine may lease out its gas transit pipeline

Ukrainian President Viktor Yanukovych says his country may lease its natural gas transit system, in a move seen as an apparent strengthening of ties with Moscow.

Speaking in a televised question-and-answer session on Friday, Yanukovych said that renting out the pipeline which carries Russian gas to Europe would provide funds to maintain the sprawling gas transit and storage system and ensure that Ukraine receives proceeds for pumping the gas.

Disputes between Kyiv and Moscow on gas prices and transit fees have caused disruptions in supplies several times in the past decade.

Yanukovych also pledged not to raise household gas prices — a key condition to unlocking International Monetary Fund aid. The statement indicates Kyiv’s unwillingness to fulfill key IMF conditions and bet instead on stronger ties with Russia.