Ukraine's Prime Minister  Mykola Azarov declares there will no merger of Naftogaz and Gazprom, commenting on a statement made by Gazprom CEO Alexei Miller on that the merger will be the next stage after the formation of a joint enterprise.

"There will be no merger, but there will be a search for an organizational form that will allow, as our President said, to synthesize the effect of work of our Naftogaz and Gazprom," Azarov said in "1+1" TV channel air.

At an economic forum in St. Petersburg, the Gazprom CEO said that the establishment of a joint venture between Gazprom and Naftogaz of Ukraine is possible only in case of an agreement on further merger.

He noted that the companies decided to negotiate a phased merger, which will begin with a joint venture on equal terms.

According to Miller, the Ukrainian side will bring to the joint venture the gas transit system and mining assets.

But the Russian side proposed fields with reserves being equivalent to the contribution of the Ukrainians.

Furthermore, Naftogaz will automatically become a party to the project Nord Stream and South Stream in the event of a merger with JSC Gazprom.

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