KIEV, Sept. 23 – The European Bank for Reconstruction and Development may next year extend some $150 million in financing for the first phase of the modernization of Ukraine's gas transport system, but is waiting to see the country take specific steps toward the restructuring and financial rejuvenation of national oil and gas company Naftogaz Ukrayiny, the bank's country chief for Ukraine, Andre Kuusvek, told Interfax-Ukraine.

The bank estimates that the entire project will cost around $310 million, of which the EBRD is willing to consider 50% and the European Investment Bank the other 50%, Kuusvek said. The EBRD, he said, wants to see concrete steps taken towards the restructuring of Naftogaz Ukrayiny. Tariffs are also an issue, but the bank is not pushing for increases - it wants to see Naftogaz's deficit erased with or without the bank's assistance, he said. There is a problem, and it needs to be solved, he said.