Russia offers Ukraine's Yanukovich warm welcome

MOSCOW, Sep 22 (Reuters) Russia has warmly welcomed Ukrainian Prime Minister Viktor Yanukovich, signalling an improvement in relations a week after he slowed the ex-Soviet state's drive to join NATO.

President Vladimir Putin made room in his schedule yesterday to meet Yanukovich late in the night before leaving for France.

Various sources said the meeting lasted between two and four hours although the Kremlin gave few concrete details. Yanukovich was quoted as saying by Itar-Tass news agency that they had a ''good conversation covering the full range of our relations''.

Russian Prime Minister Mikhail Fradkov told Yanukovich today ''our work is advancing in an atmosphere favourable for finding mutually acceptable solutions'', Interfax news agency said.

Russia, alarmed by Ukraine's pro-Western revolution in 2004, has nearly doubled prices for gas supplies to Kiev to 95 dollar per 1,000 cubic meters and briefly halted supplies to Ukraine in January, disrupting deliveries to Europe.

The Kremlin sighed with relief when Yanukovich, an advocate of close ties with Russia, won a parliamentary election in March and became prime minister. This made him, for Moscow, a counterweight to the pro-Western President Viktor Yushchenko.

After talks with Putin in August that he described as ''very difficult'' Yanukovich told his ministers to prepare for gas prices of 135 dollar per 1,000 cubic metres.

KREMLIN NATO FEARS Since then, Yanukovich has defused one of the worst Kremlin fears by telling NATO that Ukraine was not ready to embark on a ''fast-track'' approach to membership of the western military alliance.

He has also spoken in favour of improving trade and economic ties with Russia, including revival of a top-level commission chaired by the presidents -- an institution that had been stalled since the 'Orange Revolution'.

Yanukovich, who is set to meet top officials of Russia's gas monopolist Gazprom, said in televised comments after meeting Fradkov that new gas prices for the fourth quarter of 2006 would be decided in the next few days.

He also said prices for 2007 and the following three years would be decided in October.

''We need to find a compromise that would satisfy ... clients and ensure effectiveness for both clients and suppliers,'' Fradkov said on NTV television. ''I think such a solution will be found.'' REUTERS DKA BD1600