Realization of the South Stream gas pipeline project depends on negotiations with Ukraine, Gazprom CEO Alexei Miller says.

Commenting on the prospects for the South Stream project in the context of negotiations on cooperation in the gas sphere with Ukraine, Miller said: "South Stream has always been tied to Ukraine."

Last week Ukraine's President Viktor Yanukovych estimated the gas talks with Russia as complicated and difficult. He also accused Europe of ignoring its engagements towards Ukraine within the European energy charter, saying Ukrainian gas transportation system is being devaluated while Russia is constructing North Stream and South Stream gas pipelines.

Ukrainian mass medias published unofficial information on creation of Gazprom-Naftogaz joint companies, which will control the gas transportation system and gas distribution networks.

In his turn, the head of President's Administration Serhiy Lyovochkin declared that Ukraine's gas transportation system would become unprofitable is the transit volumes were reduced down to 60 milliard square meters. Ukraine's authorities are concerned over Russia's and EU's joint plans to construct South Stream pipeline and offers to invest instead into modernization of Ukrainian GTS.

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