KIEV, Ukraine (Reuters) – President-elect Viktor Yushchenko, whose defeated pro-Russian rival has quit as prime minister, on Monday promised Ukrainians a modern market economy, even as prices of vital gas imports soared by one-third.

Turkmenistan cut gas supplies to Ukraine on Jan. 1 and the central Asian state only promised to reopen the taps Monday after Kiev agreed to the price increase.

Dearer gas adds to Ukraine’s economic worries including a bulging budget deficit and average wages of $60 a month — just a tenth of those in European Union newcomer Poland — eroded by years of policy neglect and corruption.

But Yushchenko, a west-leaning liberal who beat Viktor Yanukovich in an election re-run last month, said his country of nearly 50 million should feel the benefits of sound government within a year. Yanukovich announced Friday he was resigning as prime minister.

“Ukraine is still sleeping to the east of Europe, but I am … convinced that it will become the most modern market in eastern Europe,” Yushchenko said in remarks broadcast by Polish news channel TVN 24.
Full Article: nytimes.com/reuters

See also: 2000 Rand report on Caspian oil and gas.

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