KIEV, Sept. 30 - The European Union assured Ukraine Thursday the country will continue to be the key transit route for Russian natural gas supplies to Europe, and agreed to disburse $308 million to upgrade its gas pipeline system.

EU energy commissioner Gunther Oettinger late Thursday met Energy Minister Yuriy Boyko to discuss the plans, and said the money will be disbursed to make sure modernization of the system begins in 2012.