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Edition: U.S. Article Slideshow Save Email Print Reprints Most Popular Most Shared UPDATE 2-US Democrats would kill healthcare over abortion 04 Mar 2010 U.S. recalls common flavoring after contamination 7:40am EST Liberals rap Kremlin as Stalin is worshipped 5:33am EST It's official: An asteroid wiped out the dinosaurs 04 Mar 2010 Chinese youth accused of not being fighting fit 04 Mar 2010 It's official: An asteroid wiped out the dinosaurs 04 Mar 2010 U.S. recalls common flavoring after contamination 7:40am EST UPDATE 2-US Democrats would kill healthcare over abortion 04 Mar 2010 Liberals rap Kremlin as Stalin is worshipped 5:33am EST Could germs be making you fat? 04 Mar 2010 New Ukraine leader soothes Russia, no gas deals Denis Dyomkin MOSCOW Fri Mar 5, 2010 1:50pm EST Related News Kremlin tough on gas deal ahead of Yanukovich visit Thu, Mar 4 2010 Kremlin tough on gas deal ahead of Yanukovich visit Thu, Mar 4 2010 < 1 / 4 > View Full Size MOSCOW (Reuters) - Ukraine's new president Viktor Yanukovich soothed Moscow Friday by suggesting he would reverse key policies of his pro-Western predecessor, but won no public promise that Russia will lower Kiev's onerous gas bills. World | Russia Making a state visit to Moscow a week after his inauguration, Yanukovich said his five-year presidency is a chance to "open a new page" in ties between the Slavic neighbors after half a decade of increasing acrimony. Russian President Dmitry Medvedev said both leaders would "do everything" to put ties back on track. "We are talking not about the development of relations but about their rebirth," he said. Yanukovich suggested he would let Russia's Black Sea Fleet remain at its base in the Crimean peninsula port of Sevastopol after the current lease expires in 2017. Former President Viktor Yushchenko had stressed he wanted Russia out by the deadline. Yanukovich also said he would scrap orders Yushchenko signed which elevated two World War II-era nationalists reviled by Russia to the status of "Heroes of Ukraine." The decrees angered Ukraine's former imperial master Russia and increased its distaste for Yushchenko, who pushed his nation toward NATO and sought to shed Moscow's influence. Despite Friday's warm talk, there were fewer signs of solidarity on the economic issues that will continue to dominate relations between energy giant Russia and Ukraine, a key export route for Russian oil and gas headed for Europe. "POISONED CHALICE" Russian Prime Minister Vladimir Putin forged a long-term gas deal in 2009 with Yanukovich's election rival, former Prime Minister Yulia Tymoshenko, removing preferential price treatment for Ukraine and bringing rates paid in line with the market. Many analysts believe Kiev's desperate public finances mean Yanukovich must push for change in the long-term gas deal. "He's inherited the proverbial poisoned chalice in the economy and will need to do deals with both Russia and the EU," said Chris Weafer, chief strategist at investment bank Uralsib. But neither Medvedev nor Putin discussed the gas pricing with Yanukovich, Russian officials said. They suggested it would be addressed once Yanukovich forms a government in Ukraine. Yanukovich's first foreign destination as president was Brussels, where he assured the European Union Monday that Ukraine will be a reliable gas transit route. Europe, which gets a fifth of its gas needs from Russia via Ukraine, is hoping warmer Moscow-Kiev ties will prevent repeats of price disputes which have led to supply cuts to Europe. The Kremlin Thursday said Ukraine should not seek to revise gas contracts. But Russian daily Kommersant reported on Friday that Ukraine will offer Moscow a one-third stake in the management of its gas pipelines in exchange for deep price cuts. Ukraine's acting prime minister and Yanukovich rival Oleksander Turchinov, said giving Moscow any control over the pipelines would be "a betrayal of national interests." Yanukovich has pleased Russia by making clear he opposes Ukraine joining NATO. But analysts have said Yanukovich would have to offer Moscow bigger incentives, such as a deal for the Black Sea Fleet to stay on, to win lower gas prices. Yanukovich may also seek to convince Russia not to proceed with Nord Stream or South Stream, pipelines that would bypass Ukraine in delivering gas to Europe and cut Kiev's revenues. At the Kremlin, Medvedev and Yanukovich signed a declaration vowing to boost economic ties "in every way possible." But an exchange between and Yanukovich and Putin underscored the limits. When Yanukovich said Ukraine wants "a sharp turn" in ties, Putin said curtly, "Join the customs union," referring to a trade group linking Russia, Belarus and Kazahstan. Ukraine is in the World Trade Organization and is unlikely to join the union. World Russia More from Reuters Wall St jumps as jobs data spurs optimism NEW YORK (Reuters) - The Dow industrials jumped more than 1 percent on Friday as news that U.S. employers cut fewer jobs than expected last month fueled investors' appetite for riskier assets like stocks. | Video Payrolls data buoy job creation hopes | Video European leaders see no need to bail out Greece Chile quake-area still shaking, death toll unclear | Video NY governor losing support among voters House panel says Toyota shows no proof yet of study » More Top News Fortunes turn with the dollar U.S. companies with big overseas markets rejoiced at the dollar's misery but now the tide is turning. Full Article The greenback: Best of a bad bunch Video: Storms are good sign for dollar How long can dollar defy gravity? Currencies Greeks: "Never, never, never" Strikes over Greece's new austerity measures hit schools and hospitals and bring public transport to a stop in Athens. Full Article Germany won't "give a cent" to Greece Factbox: Commentaries on debt crisis World © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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