Ukraine Dropping Ruble as Rift With Russia Grows

President Leonid M. Kravchuk, denouncing Russia’s imperialism, announced Tuesday that Ukraine will effectively be rid of the ruble by next month, when special paper coupons become the legal tender for all cash transactions.

In a televised address that seemed certain to widen the rift between Russia and Ukraine, Kravchuk vigorously attacked what he called Russia’s “imperial illnesses” in trying at one time to claim virtually the entire Black Sea Fleet, as well as foreign embassies and other assets “built by all of the peoples of former (Soviet) Union,” for Russia.

Although he expressed the hope that Russia will recover from its current “illness” and that “everything will fall into place,” Kravchuk called Moscow’s attitude toward Ukraine unacceptable and said his government is preparing an official protest.

“Independent Ukraine will never allow anyone to dictate terms,” Kravchuk exclaimed in a rare public display of emotion.

Central to Kravchuk’s concerns are the serious difficulties now being experienced by the Ukrainian economy. A coupon system for most goods went into effect last week, although distribution of the scrip has been limited so far. The wildly inflated prices that have resulted have been likened to an American consumer needing to pay $30 for a loaf of bread, and public confidence in the government’s economic policy has been badly shaken.

Kravchuk laid most of the blame for the economic chaos at Russia’s door. He charged that the Russian government’s price liberalization program, enacted Jan. 2, had interfered with Ukraine’s own reforms, forcing the smaller Slavic state to raise prices before it was really ready.

Also, Russia, where the only printing press for rubles in the former Soviet Union is located, acted with “complete irresponsibility” by not shipping additional currency stocks to Ukraine. The additional currency would have allowed wages to be increased to compensate for the much higher prices, Kravchuk said. But, he said, “mistakes will be corrected.”

Kravchuk said that by February, Ukraine will begin using coupons for all cash transactions, ridding itself of any need for the ruble. Ukraine’s own currency, the hrivna, is being printed in Canada and is expected to begin arriving in the republic in June.

Kravchuk’s words about rectifying errors committed during the enactment of economic reform could also herald a shake-up, or even the wholesale dismissal, of the government of Prime Minister Vitold Fokin, who is widely unpopular.

Kravchuk’s combative remarks seemed to be a departure from the more conciliatory tone adopted by Ukrainian officials the previous day as they sought to defuse the dispute with Russia over the Black Sea Fleet. The officials, however, said the agreement to carve it up, ship by ship, could bring future quarrels.

Special correspondent Mycio reports for The Times from Kiev.