"As far as a possible gas consortium is concerned, the only element that can be discussed at this stage is the construction of the Bogorodchany-Uzhgorod gas pipeline," Viktor Yanukovych said after a meeting with President Viktor Yushchenko and Parliamentary Speaker Oleksander Moroz.
"We could build it independently, or we could join forces with our partners. We will decide how best to do this in the nearest future. But we are certainly interested in progressing further in relations with Russia on this issue. This is a matter of our country's energy security."
Last Friday the president called for a careful approach to proposals to merge Russian and Ukrainian gas assets into a consortium. The statement from Yushchenko, whose grasp on power has been slipping in recent months with parliament's sacking of ministers appointed by him and the passing of a new Cabinet law weakening his powers, came as a sharp contrast to the premier's comments in support of the offer.
Russian President Vladimir Putin suggested last Thursday that Ukraine could be granted access to Russian oil and gas fields if it agreed to a gas consortium.
Yanukovych said Ukraine considers fuel and energy cooperation with Russia to have strong potential, and wants to build mutual trust with its neighbor.
However, the pro-Kremlin premier said the issue of a possible Russian-Ukrainian gas consortium would have to be discussed by parliament, the Supreme Rada.
"When approving strategies for our country's energy security, this issue must be discussed by parliament, publicly and transparently. All these issues must be decided within the framework of Ukrainian law."
Ukraine's Western-leaning president has said the country's gas pipeline system is its strategic asset, monopolized and run by the state under law. "Any modifications of this established model must be carefully considered," he said last week.
Relations between Russia and Ukraine dipped to their lowest after "the orange revolution" in Kiev in 2004, which swept President Yushchenko to power. At the beginning of 2006, a bitter gas price row erupted between the countries during which Russian gas monopoly Gazprom briefly turned off the gas taps to Ukraine amid freezing temperatures, sparking international criticism.
Ties between the neighbors have been restored since Yanukovych, Yushchenko's rival in the 2004 presidential race, became prime minister last August. The prime minister has steadily consolidated his power during the past half year.
Ukraine's gas pipelines stretch over 37,500 kilometers (23,306 miles), and include 71 pumping stations and 13 underground gas storage facilities holding 32 billion cubic meters. The capacity of Ukrainian pipes leading from Russia to the European Union is 141 billion cubic meters per year.
