The European Union is interested in the development of a gas hub in Ukraine, Ukrainian Premier Mykola Azarov said at a cabinet meeting in Kyiv on Wednesday.

"At the meeting of the Ukraine-EU Council in Luxemburg, the concept of Ukraine's role in the energy strategy was first formulated at the highest level and officially announced. The EU is interested in Ukraine being the European gas-energy hub, that is strategic gas stocks for the European market are stored in our territory and maneuvering energy facilities are located here," he said.

Azarov stressed that the Ukrainian gas transport system (GTS) jointly with the underground storage facilities has unique and irreplaceable possibilities.

"The development of a network of Ukrainian underground gas storage facilities and the modernization of the GTS can play a key role in the strategic stability of the European energy market. This is a large long-term project, which is challenging both technically and politically," the premier said.

Azarov has ordered Vice Premier Yuriy Boiko to draw up a concept on the development and modernization of the Ukrainian GTS, underground gas storage facilities and to present it before the Ukraine-EU Summit in Vilnius.

The premier also instructed to adapt the draft revised energy strategy of Ukraine until 2030 to the new prospects.

As reported, Ukraine plans to develop the Eastern-European gas hub on the basis of its underground storage facilities. Earlier Ukrainian President Viktor Yanukovych said that after the modernization of the GTS Ukraine could offer its underground storage facilities as a basis for the new gas spot market. He said that the storage facilities could operate under the principle of a gas exchange, becoming a spot market in the east of Europe.