KIEV, March 13 - UkrGaz-Energo, a joint venture between Naftogaz Ukrainy and RosUkrEnergo AG, plans to borrow around $1 billion in 2007, Ihor Voronyn, the company's chief executive, said.

"Unfortunately, Ukraine's financial system is not yet able to meet out borrowing requirements so we'll be raising the lion's share of this on foreign markets," Voronyn said at the Ukrainian Investment summit in London on Tuesday.