The European Union's lending arm, the European Investment Bank, will lend Ukrainian pipeline operator Ukrtransgaz approximately $187 million to upgrade a section of natural gas pipeline, according to The Associated Press.
The Urengoy-Pomary-Uzhgorod pipeline delivers natural gas from Russia to numerous countries in Europe. It has the capacity to move 142.5 million cubic meters of natural gas each year. By modernizing almost 75 miles of pipeline over the next four years, Ukraine will lower natural gas transportation costs by 20 percent and reduce toxic emissions.
"A new pipeline will be laid, which will give us a chance to call a tender to buy pipes, from Ukrainian producers, I hope," Ukrainian Prime Minister Arseniy Yatsenyuk stated, according to the Kyiv Post. "This will additionally contribute to the Ukrainian economy."
In addition to replacing miles of pipeline, Ukraine intends to upgrade two compressor stations. The European Bank for Reconstruction and Development is set to loan the country $200 million for these projects, the final decision for which should be decided by Dec. 10, according to the Kyiv Post. Prime Minister Yatsenyuk stated he hopes a Ukrainian company will complete the projects to further help the nation's economy.