AP Online, Kiev, Ukraine, Wednesday, April 28, 2004

At his monthly news conference, Kuchma criticized the EU for refusing to grant Ukraine long-awaited market economy status, but acknowledged that Ukraine is not ready to join the bloc, stressing the need to first improve the country's economic competitiveness and democratic rule.

Last year, Kuchma received a clear sign from top EU leaders that Ukraine would eventually be offered membership in the bloc, but wasn't given any timetable for its accession.

Kuchma's comments came amid growing international concerns over last week's fraud-marred mayoral election that many fear sets a disturbing precedent for the Oct. 31 presidential vote.

He acknowledged that the vote in the city of Mukachevo "significantly damaged the state's image", saying that "the struggle for power has clouded politicians' minds."

Exit polls and vote records indicated an opposition candidate won the election, in which the candidate from a party headed by Kuchma's chief of staff was declared the victor.

Kuchma's critics say democracy has suffered during his 10 years in office, accusing his administration of using its levers of influence to slant elections.

Kuchma is not running in the fall election, but his allies have announced that Prime Minister Viktor Yanukovych will run with his backing. Yanukovych could face a strong challenge from key opposition leader Viktor Yushchenko, who is expected to run. (am/jh)