Medvedev in Ukraine with energy accord on agenda

Russian President Dmitry Medvedev (L) and his Ukrainian counterpart Viktor Yanukovych exchange agreements in Kiev, capital of Ukraine, May 17, 2010. The two countries agreed to cooperate on a wide range of issues including natural gas and aerospace ventures. Photo: Xinhua

By Han Wujun in Moscow and Zhang Wen in Beijing

Russian President Dmitry Medvedev arrived Monday in Ukraine for a two-day visit, in a bid to further boost ties with Kiev and deepen cooperation in many industries.

Accords on border demarcation, satellite navigation and banking were among the deals expected to be signed after Medvedev held talks with his Ukrainian counterpart, Viktor Yanukovych, AFP cited officials as saying.

Those deals come on the heals of a pitch by Russian Prime Minister Vladimir Putin on April 30, when he proposed to Ukrainian Prime Minister Mykola Azarov the ideas of merging the two countries' nuclear industries into one giant holding, and of merging their state-owned gas companies.

Yanukovych replied that there is no chance of that happening, calling the suggestion "a joke."

"It (Putin's offer) was an unexpected step for Ukraine, and it does not mean that this question will be considered by Ukraine and resolved," Yanukovych was quoted by Reuters as saying earlier.

Medvedev, on the other hand, urged Kiev not to immediately reject the gas-merger proposal.

Speaking to Ukrainian media before the trip, Medvedev said he believed it was still early to say anything about the deal.

"I'm not offended by the refusal, because I haven't yet discussed the issue with President Yanukovych," he said. "We are talking about not only a merger," but also "joint ventures" and other "partnerships."

Xing Guangcheng, director of the Institute of Russia, East European & Central Asian Studies at the Chinese Academy of Social Sciences, noted that Russia aims to increase its influence in Ukraine and gain long-term control of the gas transporting.

"Russia's Gazprom, the world's largest gas company, is unlikely to complete the takeover of Ukraine's Naftogaz, considering the opposing voice in Kiev and an assessment of the debt-ridden company. However, cooperation between the two companies would reduce the risk of transferring gas from Russia to Europe, as well as boost the economic ties between the two sides," Xing said.

Medvedev and Yanukovych stunned observers last month when they signed an agreement prolonging the stay of Russia's Black Sea Fleet in Ukraine for another quarter century, a deal that infuriated Ukrainian nationalists, who organized a 2,000-strong protest last week denouncing Yanukovych's pursuit of closer ties with Russia.