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A proposed merger between the two largest...

in the nuclear energy sector" Volynets told Gazeta.ru.

Earlier on Friday, chief of Russian nuclear corporation Rosatom Sergei Kiriyenko said Russia and Ukraine may create a joint nuclear venture based on Russia"s Atomenergomash and Ukraine"s Turboatom companies.

Volynets said attempts to take control of Ukrainian atomic energy plants would lead to a loss of sovereignty and cause "the people to rise".

Russian business daily Vedomosti quoted Putin"s spokesman, Dmitry Peskov as saying that Putin"s proposal has more "pros" than "cons". Peskov said if Gazprom merges with Naftogaz Ukraine"s transit network will be modernized and their use will be guaranteed.

Vedomosti quoted an independent Ukrainian expert Valentin Zemlyanskiy as saying that Gazprom is ready to provide Naftogas with the investment it needs. If Ukraine refuses Russia"s proposal after the launch of the South Stream project, a gas pipeline, which is to transfer Russian gas to Europe under

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