LONDON, March 14 - Ukraine's UkrGazEnergo is in talks with Western banks to raise $1.3 billion in loans and is also in discussions to acquire power-generation assets in countries to the southwest of the former Soviet republic, the company's chairman said.

UkrGazEnergo, a natural gas distribution company, is a 50-50 joint venture between Ukrainian state gas company Naftogaz and RosUkrEnergo AG.