BRUSSELS, July 31 (Xinhua) -- European Commission President Jose Manuel Barroso on Friday welcomed an agreement between the commission, international financial institutions and Ukraine on the reform of Ukraine's gas sector.

    "I'm extremely pleased that political agreement has been reached with Ukraine on reform of its gas sector which opens the way for a financial assistance package to be provided by the international financial institutions to Ukraine," said Barroso.

    "The agreement should provide the stability needed to significantly reduce the risk of a further gas crisis between Ukraine and Russia and therefore provide the security of supply that (European Union) member states and our consumers expect," added Barroso.

    Under an agreement between Ukraine and the European Commission, the European Bank for Reconstruction and Development, the World Bank and the European Investment Bank, the international financial institutions will provide financial support for Ukraine's gas sector reform and help the country overcome the financial crisis.

    The European Bank for Reconstruction and Development is ready to consider extending a sovereign-guaranteed loan to Ukraine's gas company, Naftogaz, which will provide Naftogaz with working capital for immediate gas storage requirements and longer term finance to support an investment program for the rehabilitation of the existing gas transit system.

    The World Bank will consider providing budget support to the Ukrainian government while the European Investment Bank is willing to consider sovereign guaranteed long-term loans to support and co-finance the rehabilitation and upgrade of Ukraine's existing gas transit system.