Ukraine needs $4 billion in credits to buy Russian gas for its underground storage areas and hopes to raise the funds through European banks, Prime Minister Yulia Tymoshenko said on Tuesday, according to Reuters.

"We are talking about four billion dollars," Tymoshenko told a news conference after meeting European Union officials in Luxembourg.

"We are today working on the idea of borrowing these credit resources in European banks and the European side is favouring this as well as the Russian side."