Kiev to control Naftogaz, minister says

BRUSSELS, May 13 (UPI) -- The pro-Russian government of Ukrainian President Victor Yanukovych won't give up control of the energy industry to Kremlin patrons, officials said.

Kiev in April signed a deal with Russia for a 30 percent discount in natural gas in exchange for an extension on the lease for the Russian Black Sea fleet in Crimea.

Russian Prime Minister Vladimir Putin, in the wake of the deal, suggested Russian energy company Gazprom could merge with Ukraine's Naftogaz in part to stabilize the regional energy sector. That move, however, would give Moscow partial control over 80 percent of the energy transit sector to Europe.

Ukrainian Foreign Minister Kostyantyn Gryshchenko told the Financial Times, however, that there was serious apprehension to the deal.

"We've said we will look into it but obviously there would be major difficulties in full integration of the two companies," he said. "We are not about to abandon control of Naftogaz."

Opposition lawmakers caused serious damage to the building housing the Ukrainian parliament during April debate over the revised gas deal. Gryshchenko said a deal signed by the previous government left Kiev essentially bankrupt.