KIEV, Sept. 17 – Prime Minister Yulia Tymoshenko on Wednesday blamed President Viktor Yushchenko for upcoming deterioration of trade with Russia amid signs Moscow has been preparing to strike Ukraine with sanctions for its pro-Western course.

Russian officials have already that indicated some Ukrainian products, such as milk powder, will be restricted, but more sanctions are apparently on the way following Kiev’s criticism of Russia’s attack on Georgia.

“For everything that is going to be bad in relations with Russia, I think, President Yushchenko must bear personal responsibility,” Tymoshenko said. “If a country is declared an information war and when this country is humiliated and insulted [by Ukraine], then of course Ukraine should expect the strike in response.”

The comment underscores mounting foreign policy differences between Yushchenko and Tymoshenko towards the recent war between Russia and Georgia that had put the world on the brink of the new cold war.

Yushchenko sided with Western leaders strongly denouncing Russia for the “disproportionate” use of force, while Tymoshenko had kept silence for more than two weeks.

Tymoshenko later refused to approve the resolution condemning Russia, a development that had triggered the collapse of the pro-Western coalition between Yushchenko and Tymoshenko.

Russia essentially isolated itself internationally as only one country, Nicaragua, had actually supported Russia’s handling of the war and, like Moscow, recognized the independence of two separatist Georgian territories.

Tymoshenko said Ukraine should have used a softer tone while dealing with Russia.

“One has to conduct a balanced policy that protects Ukrainian interests and that makes Ukraine a player - not a pariah - in the world, a subject – not an object - of all geopolitical and economic policies that are being conducted in the world today.”

“This is exactly the policy I will be holding,” Tymoshenko said.

The comment is the first declaration of Tymoshenko’s foreign policy criteria and comes as she is widely expected to be the front-runner in the next presidential election due in early 2010.

The president is in charge of the foreign policy and defense, according to constitution, although Tymoshenko has been seeking to re-write the constitution to shift all powers to the prime minister, a position she indicated she would like to keep.

The deteriorating trade with Russia may be caused by unusually high natural gas price that Russia may slap on exports to Ukraine in 2009, analysts said.

Ukraine currently buys gas from Russia at $179.5 per 1,000 cubic meters, but Russian officials, including Russian Foreign Minister Sergei Lavrov, indicated that the price may go as high as $400/1,000 cu m in 2009.

Talks between Gazprom of Russia and Naftogaz Ukrayiny, the national oil and gas company, earlier this month failed to make any progress, triggering concerns that a dispute is likely at the end of 2009.

Analysts see Tymoshenko’s warning of the upcoming trade sanctions as a further indication that Russia may seek to steeply increase gas prices. (nr/ez)