KIEV, Feb. 28 - The European Bank for Reconstruction and Development is not prepared to provide loan resources to modernize Ukraine's gas transport system in the absence of systemic reform in the country's gas industry, EBRD Senior Banker Paul Shapiro said at a conference in Kiev.

The EBRD cannot lend to a loss-making company like national oil and gas company Naftogaz Ukrayiny, he said.

Ukraine previously took on the commitment to raise gas tariffs, but it failed to bring them to an economically sound level. Politicians fear raising tariffs, and the population dislikes it, he said.