"The crisis can be prevented by only one way, passing as soon as possible to market mechanisms," said Yushchenko." The price for transit of Russian gas through Ukrainian territory was three times lower than those of the market."

Ukraine is an important transit route for Western Europe"s oil and gas supplies from Russia.

Last year Kiev and Moscow engaged in a bitter squabble over natural gas prices, resulting in Russia temporarily turning off the taps until Kiev agreed to a twofold price increase. Russia"s move was widely seen as punishment for Ukraine"s pro-western policies.

Yushchenko political rival, Prime Minister Viktor Yanukovych, last year pledged to mend ties with Russia and under his rule, Ukraine signed a deal keeping gas prices at one of the lowest levels proposed by Russia for ex-Soviet republics.

Weeks after escalating political tensions, Yushchenko and Yanukovych on Sunday agreed to hold parliamentary elections on Sept. 30, allaying fears that their struggle could escalate into open confrontation after Yushchenko sent several thousand troops to the capital.

PIN/PressTV