Yushchenko Tells Putin Thanks, But No Thanks.

President Viktor Yushchenko refused Russian President Valdimir Putin’s offer to loan Ukraine money to pay for increased gas prices yesterday. Yushchenko said Ukraine was very grateful for Putin?s offer but said that Ukraine was able to pay for gas itself. Earlier Putin had offered to loan Ukraine USD 3.6 bln to cover the country’s losses due to Russia’s new gas prices. The President said that Ukraine has never taken anything for free and will not start now. Yushchenko added that all sides understand that Ukraine and Russia’s energy relationship is in transition. Ukraine plans to appeal to an arbitration court in Stockholm if it cannot reach compromise with its northern neighbour. Concorde Capital: Putin’s proposal is generally believed to be a populist move to win support for Yanokovich in his campaign for Prime Minister. Had Ukraine taken this loan it is possible that it would have led to the loss of some gas pipelines. Russia’s heavy handed tactics to regain the leverage it lost in Ukraine after the orange revolution are causing a messy divorce between the two countries that we believe will be beneficial for Ukraine in the long run.