KIEV, May 17 - Russian gas giant Gazprom will fully pay for modernization of Ukrainian natural gas pipelines in the event of its merger with Naftogaz Ukrayiny, Gazprom CEO Alexei Miller said Monday.

Miller, who is in Kiev as part of a team led by Russian President Dmitry Medvedev for two-day talks with Ukraine, said the merger would reflect a global trend in the energy sector.

“The proposal concerning the merger of the two companies goes in line with global trends of mergers in fuel and energy sector,” Miller told reporters.