Ukraine is seeking to modernize its gas transportation system to make it more competitive, Prime Minister Mykola Azarov said on Tuesday.

"The building of gas piping routes skirting Ukraine is a fact, so we realize that only extensive modernization... will make our truly reliable route competitive," he said during a meeting with Jose Manuel Pinto Teixeira, the European Commission's ambassador to Ukraine.

Azarov said Ukraine would negotiate with the European Bank for Reconstruction and Development and the World Bank on cooperation in the implementation of infrastructure and investment projects.

He added that Ukraine would have to raise at least $15-20 billion for such projects.

In March 2009, Ukraine's previous government led by Yulia Tymoshenko signed a declaration with the EU on the modernization of its gas transportation system, a project which would not have involved Russia. However, Kiev and Brussels subsequently said they would be happy to see Moscow take part.

The new Ukrainian government is seeking closer cooperation with Russia, in particular in creating a gas transport consortium to operate the national gas transportation system.

KIEV, March 16 (RIA Novosti)