Ukraine expects to receive the first loan resources for the modernization of the national gas transit system (GTS) at the end of 2011, Minister of Energy and Coal Industry Yuriy Boiko addressed Adam Smith Conferences' 2nd Annual Ukrainian Energy Forum.

"The first money will come at the end of the year and we will start upgrading," Boiko said, UKRINFORM reported.

At the same time, he clarified that it is the Urengoy-Pomary-Uzhgorod gas pipeline.

The minister forecasts that a feasibility study on the modernization of the gas transit system will be developed in mid-2011.

On December 3, 2010 Boiko said that in mid-2011 Ukraine would receive a USD 308-million loan from international financial institutions for the modernization of its GTS.

The Ukrainian gas transit system is the backbone of gas supplies to Europe. It pumps 20% of gas that the European Union consumes, and 80% of Russian gas, exported to the EU, as well as significant volumes of gas from Central Asia.

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