UKRAINE: The Ukrainian President-elect Mr Viktor Yushchenko has promised Ukrainians a modern market economy, even as prices of vital gas imports soared by one-third.
Turkmenistan cut gas supplies to Ukraine on January 1st and the central Asian state only promised to reopen the taps yesterday 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.
Mr Yushchenko, a west-leaning liberal who beat Mr Viktor Yanukovich in an election re-run last month, said his country of nearly 50 million people should feel the benefits of sound government within a year. Mr Yanukovich announced on Friday he was resigning as prime minister.
"I will prove one thing," Mr Yushchenko said, "if this country is governed by honest people, who love their country and their people, and this government can survive, then within 365 days, each person will feel the effects of the economic development plan."
As Mr Yushchenko spent the New Year holiday with his family, news came through from central Asia that Ukraine would have to pay $58 per 1,000 cubic metres of Turkmen gas, up from $44 previously. Ukraine will import 36 billion cubic metres of Turkmen gas in 2005 - nearly half its needs.
The Turkmen President, Mr Saparmurat Niyazov, thanked Ukraine for its "wisdom and understanding" in agreeing to pay more. The self-styled "chief of the Turkmen" also recognised Mr Yushchenko as Ukraine's legitimate leader - something Russian President Vladimir Putin, who originally backed Mr Yanukovich, has yet to do.
Although the gas dispute shows Ukraine is still locked in to the former Soviet Union's economic infrastructure 13 years after independence, Mr Yushchenko sees following countries like Poland into the West as the key to economic success.