KIEV, September 1 (RIA Novosti) - A final decision on a consortium to manage and develop Ukraine's gas pipeline system, a joint project with Russia, will be made in October, Ukraine's fuel and energy minister said Friday.

Russia and Ukraine signed an agreement to set up a gas transportation consortium October 7, 2002, Russia being represented by state-owned energy giant Gazprom and Ukraine by the national oil and gas company Naftogaz.

"Before the end of October, we will decide what shape the gas transportation consortium will take and will it exist at all," Yuriy Boiko said adding more economic viability estimates would have to be made.

Russia seeks to ensure reliable gas supplies to European consumers via the project, and Gazprom earlier showed interest in acquiring some energy facilities in Ukraine, including its gas distribution network. Ukraine wanted Russia to reduce gas prices in exchange for joint management of the consortium. The countries have failed to reach an agreement so far.

The consortium was also to work on a $560-mln Bogorodchany-Uzhgorod pipeline in western Ukraine that would enable Russia to increase its natural gas shipments to Europe by 19 bln cubic meters a year.

Boiko also said his country had chosen to continue building the Odessa-Brody pipeline toward Poland's Plock.

The pipeline was initially designed to supply Caspian oil to northern Europe but has instead been used "in reverse mode" since 2004 to transport Russian oil south to the Mediterranean basin.

The minister said the pipeline would basically pump oil from Azerbaijan, whereas Kazakhstan, another resources-rich Caspian state which has reported a rise in oil production recently, was seen as an additional supplier.

"We plan to propose this project for implementation to Poland," Boiko said.