The Board of national joint-stock company Naftogaz Ukrainy has not approved the purchase of equipment and works by public joint-stock company Ukrtransgaz from public joint-stock company Sumy Machine-Building Science and Production Association (Sumy NPO) to reconstruct Ananiev, Zadniprovska and Pivdennobuhska compressor stations for over UAH 4 billion.

Naftogaz said that equipment that Ukrtransgaz intended to buy was meant and could be used for reconstruction of compressor stations used only for gas transportation towards Turkey. It cannot be used at other compressor stations.

The Naftogaz board proposed to buy universal equipment that can be used at compressor stations transporting gas to domestic consumers.

"Taking into account the agreement between Russia and Turkey to implement the Turkish Stream project intended to replace transit of Russian gas to Turkey across Ukraine, this investment is unviable. The completion of construction of Turkish Stream is planned before the Russian gas transit contract expires, according to a statement of Russian Energy Minister Alexander Novak," Naftogaz said.

Naftogaz said that the company is committed to purchase high-tech equipment from Ukrainian manufacturers, but this procurement not viable if Russia halts gas transit across Ukraine.