Ukraine said it plans to found a venture with OAO Gazprom, the world's largest natural gas producer, to sell fuel to Hungary's MOL Rt and other European clients.

NAK NaftoGaz Ukrainy, Ukraine's state-owned oil and gas company, expects to sign contracts next month for the venture with Gazprom to ship Russian and Turkmen gas to Europe, Naftogaz spokesman Kostiantyn Borodin said.

Naftogaz expects to sell 600 million cubic meters of gas to MOL by the end of the first quarter of 2003, roughly equal to 20% of Hungary's quarterly consumption.

(BBJ 16.ix.02)