Kyiv and international financial institutions are finishing talks on the allocation of $308 million for the modernization of the Urengoy-Pomary-Uzhgorod gas pipeline, Ukraine's representative to the European Union, Ambassador Kostiantyn Yeliseyev, has said in an exclusive interview with Interfax-Ukraine.

He said that a respective agreement could be signed at the beginning of this year.

He said that the process on the allocation by international financial institutions of $308 million for a pilot project on the modernization of the Urengoy-Pomary-Uzhgorod gas pipeline significantly intensified at the end of last year.

"I hope that this work will reach the final phase this year, a respective agreement will be signed and the funds will be allocated," the ambassador said.

Yeliseyev noted that in the process of attracting the funds of international financial institutions the European Commission assumed the role of a coordinator. However, he did not rule out that the modernization of the Ukrainian gas transport system, as well as the general issue of energy security, would be discussed during the upcoming Ukraine-EU summit to be held in Brussels on February 25.