(27 Feb 1998) Natural Sound

Presidents Leonid Kuchma of Ukraine and Boris Yeltsin of Russia signed an economic cooperation plan on Friday to more than double trade between the two Slav states over the next ten years.

Kuchma is also said to have assured Yeltsin that Ukraine would not join NATO.

Since the breakup of the Soviet Union, relations between the Slav neighbours have been bedevilled by disputes over Black Sea naval bases, border problems and Ukraine's natural gas debts.

Ukrainian President Leonid Kuchma started the second day of his visit to Moscow by laying a wreath at the Tomb of the Unknown Soldier.

Lingering disagreements have hindered relations between Ukraine and Russia since the breakup of the Soviet Union, including Ukraine building closer ties with the West.

But relations have improved in the last year and both presidents say they expect further improvement following Kuchma's visit.

Kuchma is reported to have told Yeltsin that Ukraine did not intend to apply for NATO membership.

Such a move would please Russia which opposes the eastward expansion of the Western alliance and is wary of Ukraine's flirtations with the West.

Following Friday morning's talks, the two men signed a series of trade agreements, including a ten-year economic cooperation deal in the Kremlin's St George's Hall.

The accord signifies a further improvement in ties between the two countries which began with the signing of a friendship treaty last May.

The deal comes after years of strain, made worse by newly independent Ukraine's distrust of its former imperial master.

The two countries have ironed out major differences over ownership of warships and naval bases, and over the big ethnic Russian minority in Ukraine.

Russian Prime Minister Viktor Chernomyrdin says the economic agreement will more than double trade between the Slav neighbours over the next decade.

Yeltsin's spokesman Sergei Yastrzhembsky said the two countries also planned to boost military ties and had agreed to cooperate in arms sales on world markets.

But they have not resolved a problem over Ukrainian debts for Russian natural gas last year, and for 1991 to 1994, which total an estimated 1.2 (b) billion dollars.

Kuchma and Yeltsin managed to put these differences aside on Friday to toast their countries' newly established ties.

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