Reliable Energy Partners

"Ukraine will abide by its duties in the energy sector," Yushchenko said on Thursday after meeting with Merkel. "Ukraine is conscious of the responsibility to ensure a steady flow of energy to western Europe."

The German chancellor, whose nation currently hold the rotating EU presidency, said she supported Kiev's call for a treaty on closer cooperation with the EU, adding that Berlin backed the process of reforms and economic transformation in the Ukraine.

In a reference to a cut-off in gas supplies a year ago and more recent arguments between Ukraine and Russia over gas transport, she said the EU had an interest in receiving a reliable energy supply.

"I have no doubt that a lot of effort is going in this direction," Merkel said.

Ukrainian reforms

Merkel urged Yushchenko to give his full backing to talks on binding the former Soviet state and the European Union closer together.

"We want to work towards a fuller cooperation agreement with Ukraine to make it clear that we want to strengthen ties that are already strong," Merkel said.

"We want to do everything possible to ensure that the process of democratization and transformation in Ukraine continues successfully," she added.

Negotiations on the accord began on Tuesday, with Germany playing a major role as the current holder of the six-month rotating EU presidency.

Still no EU membership talks

The partnership and cooperation agreement with Ukraine will replace a treaty signed in 1998, which is due to expire next year. It will allow stronger cooperation on security policy, justice issues, gas and oil transit and visa policy as well expanding free trade between Ukraine and the 27-member European bloc.

Ukraine has expressed disappointment that the agreement does not automatically open the door to EU membership.

But Yushchenko said he had "no doubt" that Ukraine would "eventually be part of the structures of the EU."

A parliamentary ban

Earlier this week, Ukraine's parliament adopted a law putting a stopper on all transactions on Ukrainian gas pipelines, after Moscow suggested uniting Russian and Ukrainian gas assets.

The new law won overwhelming approval, with 430 lawmakers out of a total 450 voting in favor, and must now be signed by Yushchenko to come into force, the Interfax news agency reported.

The document bans all "reorganization, fusion, attachment, division" and "privatization" of Ukrainian gas pipelines, also outlawing the alienation or concession of their assets.

Russian President Vladimir Putin's idea to "unite the (gas) assets" of the two countries in exchange for Ukraine's access to gas production in Russia sparked mixed feelings in Ukraine.

Control over Ukraine's gas system is essential for Russia, which has 80 percent of its gas exports to Europe transported by way of its western neighbor.

The pro-Western Yushchenko was reserved in noting his Russian counterpart's project, saying that it was too early to consider it.