KIEV, Dec. 1 - The European Investment Bank will provide 150 million euros to Ukraine for modernization of its natural gas pipeline, which ships Russian gas to markets in Europe, Prime Minister Arserniy Yatseniuk said Monday.

The money, part of an agreement signed between Ukraine and the EIB earlier Monday, will go to reduce by 20% costs associated with the gas transit operation, he said.

“Today we signed the agreement on partial modernization of the Urengoy-Pomary-Uzhgorod gas pipeline,” Yatseniuk said at a press conference. “The money will allow cutting transportation costs by 20%.”