Germany's Deutsche Bank will set up a 69.4-million-U.S.-dollar line of credit to help modernize Ukraine's gas transit network, the Ukrainian government said Tuesday.
"The fact that German industry and German investment are coming into our gas transit system is a signal not only for us but also for the entire European energy community, and this is a key element in Europe's energy security," the government press service quoted acting Energy Minister Yuriy Boyko as saying.
Germany will finance the project of upgrading the "Bar" compressor station in northwest Vinnitsa region on the Soyuz gas pipeline with a throughput capacity of 26 billion cubic meters of gas annually.
After the upgrade, the life of the "Bar" station will be extended by 15 to 25 years, while the efficiency of the gas compressor will also be increased, according to the authorities.
Ukraine's gas transport network is Europe's second largest system, carrying one-fifth of the gas consumed by the European Union. It pumps 142.5 billion cubic meters to European countries a year.