The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have signed a Memorandum of Understanding (MoU) with Ukraine’s national oil and gas company, NAK NaftoGaz, to finance the modernisation of the country’s Soviet-era gas transportation system. Each financial institution will invest $155m this year in the first part of the upgrade – the reconstruction of the Urengoi-Pomary-Uzhgorod main gas pipeline. NAK NaftoGaz will finance the remaining part, estimated at about $500m. Ukraine hopes to attract more than $5bn within seven years to completely overhaul its gas transportation infrastructure. It includes more than 37,000 kilometres of pipelines, which carry 140 bcm/year of the gas supplied to Europe. The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 30 June 2011, the Bank had committed over €6.5bn ($9.3bn) through 276 projects.