By Pavel Polityuk
KIEV, Aug 14 (Reuters) - Ukraine's gas transport companyUkrtransgaz has upgraded several gas pumping stations so it canprovide gas to eastern and southern regions of the country ifthere is a disruption in supply from Russia, the company said onWednesday.
More than a third of Russia's gas exports to the EuropeanUnion cross Ukraine, providing Kiev with valuable transitincome.
Ukraine traditionally uses some of the gas pumped by Russiato European consumers for its own needs in eastern and centralregions and then compensates for this by deliveries from gasstorage located in the west of the country.
But the Russia-Ukraine gas transit agreement is due toexpire in January and Ukrainian energy authorities are worriedthat Moscow could stop gas supplies through Ukraine, leavingsome Ukrainian regions without gas in winter.
"As of today, Ukrtransgaz has implemented all the necessarytechnical and regulatory solutions to create a reliable reversescheme and it is ready for regular operation and can beactivated immediately if necessary," Uktransgaz said in astatement.
It said Ukraine had already reversed gas flows in 2009 whenRussian gas giant Gazprom halted gas supplies toUkrainian consumers because of a price dispute.
Last month, Russian energy minister and several sources saidRussia wanted to strike a short-term deal with Kiev on gastransit to Europe when the current 10-year agreement expires tobuy time to complete pipelines that will bypass Ukraine.
But Kiev and its European allies want guarantees thatUkraine will remain a transit route for Russian gas to Europe.
In January, European Commission Vice President MarosSefcovic floated a proposal for the two countries to agree a new10-year transit contract, with a guaranteed minimum yearlytransit volume of 60 bcm and 30 bcm of additional flexibility.
Ukraine's energy firm Naftogaz said last month Kiev wasstill counting on Sefcovic's proposal.
The potential for problems with the transit agreement, whichbrings Kiev around $3 billion revenue per year, promptedUkraine to increase its winter gas reserves by 18% comparedwith last year to 20 billion cubic meters (bcm).
Naftogaz said this week Ukraine had stored 16.6 bcm of gasby Aug. 10, up from 13.38 bcm at the same time last year.
Ukraine consumed 32.3 bcm of gas in 2018, 10.6 bcm of whichwas imported from European markets outside Russia.
Relations between Kiev and Moscow plummeted after Russia'sannexation of Ukraine's Crimea peninsula in 2014.
Ukraine halted its own purchases of Russian gas in 2015.(Reporting by Pavel Polityuk. Editing by Jane Merriman)