Ukraine is set to borrow up to 1.7 billion dollars from international lenders over the next 18 months to upgrade its gas transit network and prevent a winter gas crisis in Europe, European Union officials said Friday. The loans will be conditional on Ukraine's ability to reform its gas network in line with Western demands, officials stressed. The EU's executive, the European Commission, and international lenders have "reached agreement with Ukraine on the reform of the Ukrainian gas network," the commission said in a statement. The head of the commission, Jose Manuel Barroso, hailed the deal, saying that it "should provide the stability needed to significantly reduce the risk of a further gas crisis between Ukraine and Russia and therefore provide the security of supply that member states and our consumers expect." Under the deal, the European Bank for Reconstruction and Development is ready to lend Ukraine up to 750 million dollars to buy gas before the winter and to upgrade its transit network. The World Bank is prepared to lend up to 500 million dollars for structural reforms in Ukraine. And the European Investment Bank, the EU's financial arm, is willing to provide up to 450 million dollars to upgrade Ukraine's gas network, the statement said.
