KIEV, June 4 - Ukraine must get rid of cross-subsidizing and gradually switch over to economically justified rates in the energy sector, says President Viktor Yanukovych.

"We need to cancel cross- subsidizing, [need to] gradually switch over to payment for services at realistic prices with the simultaneous introduction of clear, targeted aid to less fortunate citizens," he said in his state-of-the-nation address at Kiev's Ukraina Palace on Thursday.