Ukraine Wants to Merge Russian Gas Assets With its Own

Ukraine's president Viktor Yushchenko called for a careful approach to proposals to merge Russian and Ukrainian gas assets into a consortium on Friday.

"We must discuss principles of organizing these relations and implementing these initiatives, but I would not specify any percentages or stakes today because it is all still a distant prospect."

However, Ukraine's Prime Minister Viktor Yanukovych supprted the idea to merge Russia's vast hydrocarbon reserves and Ukraine's pipelines leading to Europe, Moscow's main customer.

The Western-leaning Ukrainian president said the country's gas pipeline system was its strategic asset, monopolized and run by the state under law. "Any modifications of this established model must be carefully considered," he said.

Although Prime Minister Yanukovych welcomed the merger initiative, he said it must be formed on a parity basis.