Russian president in Ukraine to tighten relations

Russian President Dmitry Medvedev was Monday eyeing more accords with Ukraine's new pro-Moscow leadership as he paid a state visit to accelerate a breathtakingly fast rapprochement in ties.

Accords on border demarcation, satellite navigation and banking were among the deals expected to be signed after Medvedev held talks with his Ukrainian counterpart Viktor Yanukovych, officials said.

A smiling Medvedev was given a traditional welcome by young Ukrainian women in folk dress as he stepped off his plane at the head of a high-ranking Russian delegation including the ministers of defence and energy.

Since the Russia-friendly Yanukovych ousted the leaders of the pro-Western Orange Revolution in February's elections, he has unhesitatingly moved to repair ties that had slumped to a post-Soviet low in past years.

Medvedev and Yanukovych stunned observers last month when they signed an agreement prolonging the stay of Russia's Black Sea Fleet in Ukraine for another quarter century, a deal that infuriated Ukrainian nationalists.

More surprises were to come when Russian Prime Minister Vladimir Putin floated merging the two countries' nuclear industries into one giant holding and, even more astonishing, merging their state gas companies.

The developments mark a complete change from the previous presidency of Viktor Yushchenko, the passionately pro-Western leader of the Orange Revolution who irritated Moscow so much the Kremlin refused to talk to him.

As Medvedev arrived, at least 100 activists from the Svoboda nationalist party held a protest in Kiev against the government's pro-Kremlin policies, shouting "shame to the lackeys" and "down with the authorities".

But there have been signs that even Yanukovych wants to mark out limits for the cooperation, and he indicated last week that the merger between Ukraine's Naftogaz and Russia's far larger Gazprom could be a step too far for Kiev.

"It is impossible," Yanukovych told the BBC, saying Kiev would only consider the deal if it were a merger of equals, a condition that Russia would never accept.

"It's a joke and a tie-up under any other conditions would also be impossible," he added.

In an interview with Ukrainian media ahead of the visit, Medvedev said the issue had yet to be discussed at a presidential level but a merger could make sense if it proved to be pragmatic.

He said ideas like merging gas and transit assets or individual units "could be entirely possible on a mutually beneficial basis."

Kremlin chief of staff Sergei Naryshkin said the issue would be discussed between the presidents at the talks and the idea of a merger had to be looked at seriously.

Under pressure from pro-Western deputies, the Ukrainian government issued a report to parliament last week that revealed which documents would be signed by the two presidents Monday.

They include agreements on demarcating the Russian-Ukrainian border, on the use of Russia's satellite navigation system GLONASS and on cooperation in banking, culture and education.

But no mention was made of possible deals on energy.

The border agreement is potentially controversial, with opposition leader Yulia Tymoshenko warning that it may lead to Ukraine giving up offshore oil and gas deposits.

The deal on the Black Sea Fleet was inked by Yanukovych and Medvedev in the Ukrainian city of Kharkiv but this is the first time the Russian president has made an official visit to Kiev.

In a sign of the importance attached by both sides to the visit, Medvedev's programme was changed no less than 10 times in the run-up to the trip and only agreed finally on Sunday, the Kommersant Ukraine daily reported.