MYKOLA AZAROV, UKRAINEAN PRIME MINISTER: The merger proposition between "Gazprom" - "Naftogaz" is worthy of attention

Russia"s proposal to merge its state-owned energy giant with Ukraine"s energy company "Naftogaz", is worthy of attention and will be reviewed by the government, said Ukrainean prime-minister Mykola Azarov.

"The proposal is worth of attention", said the Kyiv official. He added: "We will examine this proposal because it comes from a great country, a neighboring country, with good intentions".

On April 30, during a reunion of the Commission for Economic cooperation between Russia and Ukraine, Russian prime-minister Vladimir Putin proposed a merger between energy companies "Gazprom" şi "Naftogaz".

The executive manager of "Gazprom", Alexei Miller, said that energy ministers of Russia and Ukraine will meet the officials of "Gazprom" and "Naftogaz" in Moscow, after May 10th, to discuss the details of a possible merger. "We are ready to discuss a possible exchange of assets, which would amount to a merger between the two companies", said Miller, who added that "Gazprom" has experience in deals involving asset swaps, as it has such partners in Germany and Italy. According to Alexei Miller, Russia will be interested to invest in Ukraine"s gas transport system, while Ukraine wants access to Russia"s resources.

The proposal comes after the two ex-Soviet republics reached a deal in April on extending the lease on the Russian Navy base in the Ukrainian port of Sevastopol for 25 years after the current lease expires in 2017.

In return for the lease extension, which may be extended for an additional five years, Ukraine will receive a 30% discount on Russian natural gas. The discount will be worth an estimated $40 billion over the next 10 years.