Ukraine, Russia pledge more consultation, closer ties

KIEV, Dec 22 (Reuters) The presidents of Ukraine and Russia, resolved to put a rough patch in ties behind them, pledged today to consult more closely on outstanding issues and work to ensure safe energy supplies throughout Europe.

Ties hit rock bottom when President Viktor Yushchenko took office in 2005 after ''Orange Revolution'' protests against a rigged presidential election in which Moscow-backed Viktor Yanukovich was initially declared the winner.

Things have improved since Moscow-friendly politicians, led by Yanukovich, made a comeback earlier this year.

Kremlin leader Vladimir Putin, making his first visit to Kiev in nearly two years, said he and the pro-Western Yushchenko understood the importance of developing strategic ties.

''Both countries fully understand the practical advantage and strategic importance of joint action,'' Putin told a joint news conference. ''We will build our relations on the basis of pragmatism, equal rights, good neighbourly ties and friendship.'' This meant improving the investment climate and close cooperation in the energy sector, nearly a year after Russian giant Gazprom briefly cut off gas shipments and disrupted supplies to Moscow's European customers.

''We understand full well how vital constructive action is in this,'' Putin said. ''It is important both for stable energy cooperation between our countries and in ensuring energy security throughout Europe.'' Speaking a day after the sudden death of Saparmurat Niyazov, president of Turkmenistan, a major source of Ukrainian gas imports, Putin said there was no need to revise existing agreements on gas supplies from the Central Asian state.

And he added: ''As regards possible substitution or additional supplies, we are prepared to cooperate with Ukraine on the basis of market principles. And if the need arises we are prepared to examine possible additional supplies of fuel.'' QUESTIONS ON GAS DEAL Ukraine, a key transit route for Russian gas to Europe, has clinched a deal for next year at prices below the European average. Yanukovich says his ties with Moscow played a big role.

Yushchenko has repeatedly questioned the transparency of the deal under which Kiev is to pay 130 dollar per 1,000 cubic metres against 95 dollars at present.

Yushchenko praised ''very constructive dialogue'' with Russia within a commission made up of cabinet members, now due to meet regularly with its next session scheduled for May or June 2007.

No energy deals were signed, with the leaders instead approving documents on border controls, copyright and culture.

Both sides appeared eager for new start in ties, having put behind them trade rows and the disruption in gas supplies.

Yanukovich engineered his comeback when his party finished first in a March parliamentary election.

When Yushchenko's ''orange'' allies proved unable to form a coalition, the president reluctantly appointed Yanukovich premier. Yanukovich has since put his own allies in key posts.

The two men have engaged in constant sniping to secure the dominant role in national politics, though an agreement was clinched today to secure passage of the 2007 budget.

The deal included an understanding to leave in place Foreign Minister Borys Tarasyuk, the chief architect of the president's pro-Western policies sacked this month by parliament.

Reuters SY GC2344