Ukraine launched difficult talks with Russia Tuesday, hoping to agree on a discounted price for Russian gas imports, though a deal could require concessions that would tilt the former Soviet republic further from the West, AP REPORTED. Visiting Russian Prime Minister Mikhail Fradkov began by meeting his Ukrainian counterpart, Viktor Yanukovych, who has sought to repair strained ties with neighboring Russia since taking office earlier this year. Fradkov planned to hold talks later with pro-Western President Viktor Yushchenko. Opening the talks, Yanukovych said that Russia and Ukraine must find a way to strengthen their relationship. «The lesson of the last 15 years testify to the fact that there is no alternative to this way,» Yanukovych said. «Anyone who tries to ignore this objective reality is acting to detriment of his people.» Last week, Yanukovych predicted the 2007 price would be no more than US$130 (¤103) per 1,000 cubic meters. If such a deal is reached, it would be seen as a minor victory for Yanukovych's government _ and for Ukraine, which could have faced an even greater price hike for Russian gas. As part of the suggested deal, Ukraine would continue to receive a mixture of Russian and cheaper Central Asian gas from an intermediary company, RosUkrEnergo. Ukrainian media speculated that this would require numerous political concessions, including stalling the country's bid to win NATO membership, prolonging an agreement on the presence of Russia's Black Sea Fleet and Ukraine's cooperation in a common economic space with Russia, Belarus and Kazakhstan. But Ukraine's Deputy Prime Minister Andriy Kluyev denied that Ukraine would agree to make any political concessions. Russian media has also reported that Russia could demand stakes in privatized Ukrainian companies in return for a continued supply of cheap gas. Fradkov said «tough work» awaited them, but added: «We are open for discussion. We are in the mood to solve those issues that stand before us.» Earlier this year, Ukraine and Russia engaged in a bitter pricing dispute, which resulted in Russia temporarily turning off the taps to Ukraine. The dispute caused an uproar in Europe, which gets much of its supply of Russian gas via Ukrainian pipelines and was affected by the shut-off. The dispute was resolved after Ukraine agreed to a twofold increase in price, paying US$95 (¤75), but it was seen as a sign of the chilled relations between the ex-Soviet neighbors. «Today we must start from square one in relations between Russia and Ukraine in which there will be no place for misunderstandings,» Yanukovych said. Many Ukrainians had hoped that the comeback of Yanukovych, named prime minister after his pro-Russian party won the March parliamentary elections, might help Ukraine improve its relations with Moscow. Ties between the countries have been strained under Yushchenko, who has sought membership for Ukraine in both NATO and the European Union. Yanukovych, who lost a bitter presidential race in 2004, has already signaled a brake in the drive for NATO membership. He has also argued in favor of closer trade ties with other ex-Soviet nations, but has stopped short of endorsing Russia's proposed common economic space.
