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Former Ukrainian PM Tymoshenko slams Russia-Ukraine gas deal

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BRUSSELS, February 1 (RIA Novosti) - Former Ukrainian Prime Minister Yuliya Tymoshenko vehemently criticized Wednesday the natural gas supply agreement reached by Russia and Ukraine on January 4, saying the deal was motivated by politics rather than economics.

After a meeting with members of the European Parliament in Brussels, Tymoshenko, who was one of the leaders of the 'orange revolution' that swept current President Viktor Yushchenko to power in 2004, said that the agreement had put Ukraine in "an exceptionally difficult situation."

Tymoshenko said the deal appeared to have been an attempt to "destabilize" Ukraine's government.

The agreement, which ended a long-standing gas pricing dispute between the two countries, provided for a joint venture to supply Central Asian and Russian gas to Ukraine at a price of $95 per 1,000 cu m. Ukraine had previously paid $50-60 for its gas under a barter agreement with Russia.

The government of acting Prime Minister Yuriy Yekhanurov, who succeeded Tymoshenko in the post last year, was dismissed last month by a parliament critical of the deal.

Tymoshenko also called for an international investigation into the operations of RosUkrEnergo, a Swiss-based company that transports Central Asian natural gas to Ukraine via Russia under the new agreement.

The former premier said the company was not transparent and had been set up under President Leonid Kuchma. Tymoshenko was the leader of the opposition during the presidency of Kuchma, who had ordered her prosecution on bribery, fraud and tax evasion charges. Those charges were dropped when Tymoshenko became prime minister.

When asked about her possible policy towards Russia in case she wins parliamentary elections on March 26, Tymoshenko said she would pursue balanced relations between Russia and "the new Ukraine", which is seeking integration into the European Union.

The former premier ruled out forming an election bloc with Viktor Yanukovych, another opposition leader, who was Yushchenko's main rival in the 2004 presidential campaign.

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