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Ukraine may join Russia-led trade bloc--president

Published 11/26/2010, 11:48 AM
Updated 11/26/2010, 11:52 AM

* Joining ex-Soviet customs bloc may jeopardise EU deal

* Yanukovich has tilted foreign policy towards Russia

GORKI, Russia, Nov 26 (Reuters) - Ukraine may join a customs union formed by its ex-Soviet peers Russia, Kazakhstan and Belarus, the Ukrainian president said on Friday, casting doubts on Kiev's hopes of a free trade pact with the European Union.

"This is possible but there are procedures we need to go through in Ukraine such as amending the constitution, which can be done either by the parliament or through a referendum," Viktor Yanukovich told reporters after meeting Russian President Dmitry Medvedev.

He did not give further details.

Ukraine is in talks with the European Union on signing an association agreement which includes a free trade deal, but Brussels has not promised it EU membership or proposed that it be given EU-candidate status.

Joining the Russia-dominated trade bloc may hamper a deal with the EU because the customs union has a common foreign trade policy with tight links to Russia.

Russia pushed through the customs union after losing patience over its bid to join the World Trade Organisation.

Russia, Belarus and Kazakhstan signed a macroeconomic policy coordination agreement last week, a key part of their drive to create a free trade zone in 2012.

SAince coming to power in February 2009, Yanukovich has tilted Ukraine's foreign policy towards Russia, abandoned the goal of joining NATO and extended the deal under which the Russian navy uses Ukrainian Black Sea facilities.

He has, however, said Ukraine remained committed to European integration and urged the EU -- Ukraine's main trading partner -- to recognise it as a potential member state. (Reporting by Denis Dyomkin; Writing by Olzhas Auyezov in Kiev; editing by Andrey Ostroukh and Tim Pearce)

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