But Yanukovych, who assumed most of economic powers as he controls the largest group in Parliament, sought to change the country??™s foreign policy by declaring slowdown in NATO negotiations.

???Moscow welcomed the prime minister??™s foreign policy activity in the NATO direction, but it is seen as insufficient for a substantial, improvement of relations,??? Dzerkalo Tyzhnia weekly reported Saturday citing the sources. ???The Ukrainian prime minister was given a package of new Russian suggestions whose implementation would be the necessary contribution to the improvement.???

Fradkov told Yanukovych that it was difficult for Russia to lower the gas prices since Turkmenistan, a major gas source, has recently increased the prices it charges Russia. But he said the intensive talks between Russia and Ukraine may lead to an agreement ???within the next several days.???

Meanwhile, as gas price talks still continue, Russia has indicated it was able to supply Ukraine about 62 billion cu m of gas annually during the next three years, starting in 2007.

The supply volumes suggest that Ukraine may resume re-export of natural gas to Europe, which had been suspended in July 2005 due to insufficient gas stocks in Ukraine.

Ukraine, which consumes about 76 billion cu m of gas annually, is expected to produce domestically about 22 billion in 2007. This, coupled with Russia??™s pledged supply volumes, leaves Ukraine with about 8 billion cu m of gas that may be exported next year, analysts said.

The gas that Russia has pledged to supply mostly includes gas from Turkmenistan, Uzbekistan and Kazakhstan, but also some Russian produced gas, Energy and Fuel Minister Yuriy Boyko said.

???The issue of gas balance for next three years is settled,??? Boyko said following the talks in Moscow.

Boyko was optimistic on the upcoming talks with Russia over gas prices to be charged in 2007, maintaining that the prices will not increase to more than $135/1,000 cu m.

???We hope that the price will be lower,??? Boyko said. ???The latest talks give us such optimism.??? (tl/ez)