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Kiev moves to improve ties with Moscow amid economic turmoil

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Ukraine's president has ordered a high-level group be set up to improve ties with Russia in the face of the ongoing financial crisis, the country's top security official said on Tuesday.
KIEV, December 2 (RIA Novosti) - Ukraine's president has ordered a high-level group be set up to improve ties with Russia in the face of the ongoing financial crisis, the country's top security official said on Tuesday.

National Security Council Secretary Raisa Bohatyriova told a news briefing that Viktor Yushchenko "has issued decrees to set up a strategic group on Ukrainian-Russian relations," adding that bilateral relations were failing to live up to their potential.

Her deputy and the country's ambassador to Russia, Konstyantyn Hryshchenko, said Kiev and Moscow should unite to tackle the consequences of the global credit crisis.

"The global financial crisis, which some estimate could last a year or two, requires joint efforts from both the political elite in the country and from all countries," Hryshchenko said.

"Naturally Russia, with trade turnover due to reach some $30 billion this year, is our largest partner, and it must be a partner in finding ways of overcoming the crisis," he said.

Bohatyriova slammed the pro-presidential party Our Ukraine, which dubbed Russia a security threat during a party congress on Saturday and urged measures to raise the country's defense capability and increase funds to re-equip the armed forces to NATO standards.

The pro-Western Yushchenko's drive to join NATO has been a major irritant in relations with Russia, which has been uneasy about Western military bases approaching to its borders.

"It is unacceptable when our partner is branded a national security threat," Bohatyriova said.

The statements echo Yushchenko's reconciliatory remarks made on Russia earlier on Tuesday and came after a recent dispute over Georgia. Yushchenko backed Georgia during its five-day conflict with Russia in August. Moscow accused Kiev of supplying weapons to Georgia, a claim Ukraine has denied.

The conflict provoked an internal political crisis in Ukraine, where the ruling coalition of the pro-presidential party and the prime minister's bloc were split over differences in views on Russia's role in the Caucasus conflict.

The political crisis led to Yushchenko dissolving parliament in September and announcing early elections, which were called off after Ukraine's economy was devastated by the global credit crunch.

Kiev had to turn to the IMF for an emergency $16.5 billion loan as prices for steel, the country's main export, plummeted and the national currency, the hryvnia, dropped to historic lows against the dollar.

The group tasked with building relations with Russia will be led by the National Security Council chief and include other security officials, ministers, and the head of national oil and gas company Naftogaz, Oleh Dubyna.

The two countries are currently negotiating payment of Ukraine's massive gas debts to Russia. Energy giant Gazprom has said the debts stand at $2.4 billion and warned of possible cuts in supplies if the outstanding sum is not repaid. Part of this sum was reported to have been repaid, but not the full amount.

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