KIEV, Oct. 11 - The European Union will help Ukraine to finance modernization of its natural gas transportation system, which moves the bulk of Russia's natural gas to markets in Europe, the government reported.

The commitment was made by EU Energy Commissioner Gunther Oettinger at a meeting with Prime Minister Mykola Azarov in Kiev on Thursday.

“We want to co-finance the modernization,” the government reported citing Oettinger.

Oettinger said the commission already discussed conditions for the loans with the European Bank for Reconstruction and Development, the European Investment Bank and by the International Monetary Fund.