Ukrainian President Victor Yushchenko has turned down the Russian president's offer of a $3.6 billion loan to finance its Russian natural gas imports at market prices in 2006.

"Ukraine will pay for itself," Yushchenko told reporters, adding he was grateful to the Russian leader for the offer.

He said the gas price should be "appropriately fixed and reasonable for Ukraine."

In his turn, Ihor Tarasyuk, head of State Affairs department, noted that "Kyiv can not accept the proposition of Russian side." Once again he underlined that Kyiv does not recognize the price $230, but if the price is $80 or $50, no credit will be needed.

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