EU urges Ukraine to reform gas transit

The European Union's top energy official has urged Ukraine to reform its natural gas transit and trade practices to avoid disruptions of Russian deliveries to Europe.

The EU has sought more transparent and commercial terms for how gas is traded between Russia and Ukraine.

The two nations' payment disputes halted European gas deliveries in early 2009. The EU has said that trade was more about politics than commerce.

EU Energy Commissioner Guenther Oettinger said Tuesday that Ukraine should allow international players to invest in the upgrade of its outdated pipelines. The sprawling network carries 80 percent of Russian gas exports to Europe.

Oettinger pledged to provide financial aid and expertise to create an "efficient, transparent and well managed energy sector" in Ukraine.

Source: Bloomberg Businessweek