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Ukraine plans to hold talks on upgrading...

"Now we naturally looking at a three-party approach in modernizing [the gas transit system]. This means the participation of Russia, the European Union and Ukraine," Mykola Azarov said.

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.

Kiev and Brussels subsequently said they would be happy to see Moscow take part.

The Ukrainian prime minister said the declaration signed in March has not so far been fulfilled. "First of all, it has not been fulfilled by the Ukrainian side. Having signed the declaration, the European Union has not made any real steps to put it into effect," Azarov said.

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.

Russia has consistently tried to get

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