If an agreement on the merger of Russian gas monopoly Gazprom and Ukrainian Naftogaz takes place, Gazprom may fund the modernization of Ukraine's gas transport system, Gazprom's CEO Alexei Miller said on Monday.
"If Gazprom and Naftogaz merge, Gazprom may fund the full modernization of the Ukrainian gas transport," Miller said.
He said a merger should be held in stages and would be equally profitable to both sides.
"The proposal of merging the two companies is completely in line with the global trend of mergers in the energy sector," he said.
Russian Prime Minister Vladimir Putin first put forward the idea of a Gazprom-Naftogaz merger at the end of April, after Moscow and Kiev agreed on a deal to extend Russia's lease on a key naval base in Ukraine in exchange for discounted prices for Russian gas. The Russian government's press service later said Moscow was not proposing a takeover but the creation of a new company.
Ahead of his visit to Kiev this week, Russian President Dmitry Medvedev said Russia and Ukraine would not discuss the potential Gazprom - Naftogaz merger, but the consolidation of some assets is possible.
KIEV, May 17 (RIA Novosti)
