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Kiev won't review gas deal

Ukrainian President Viktor Yushchenko said today he saw no need to review a New Year deal with Russia sharply raising gas prices as demanded by leading liberal Yulia Tymoshenko.

"I see no need to review this document," Yushchenko told a news conference.

"We have a price of $95 per 1000 cubic metres and this is the cheapest price throughout (ex-Soviet states). If some specialist proves able to get $85 Mcm, we would be in favour. But it would be pointless to wreck these key agreements."

The deal, which set the price at $95 Mcm, up from the previous tariff of $50 Mcm, ended months of confrontation culminating in a brief cutoff of Russian gas giant Gazprom's supplies to Ukraine and reduced flows to European customers.

The accord has come under fire from both Tymoshenko, the president's estranged ally fired as prime minister last year, and other opponents more sympathetic to Moscow.

Parliament dismissed the government in January over the deal on grounds that it ran counter to the national interest.

With talks under way to form a coalition government after last month's parliamentary election, Tymoshenko has pledged to rescind the accord should she be returned to her job as premier.

Though the Regions Party, closer to Moscow, finished first in the election, it was outscored by the combined tally of liberal groups backing the 2004 "Orange Revolution" that helped Yushchenko to office.

Tymoshenko's bloc finished first among liberals and she insists on being named premier in any "orange" coalition.

Much of the criticism of the January accord focuses on the choice of the consortium RosUkrEnergo to oversee gas supplies amid allegations that it has far from clear structures and business activities.

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