Mr. Yanukovych says life confirms a simple and obvious truth: people do not like it when they are shown a fist, but tend rather to trust more in those who extend a hand as a symbol of peace.

The new president denounced the current structure of the Ukrainian government and court system, which he says have been "sewn together" in the interests of individual politicians.

He was equally critical of Ukraine's failure to develop a post-industrial economy. He says the country, instead, turned to unbridled capitalism, which has put the country behind in 21st century knowledge-based industries. However, he says that direct government interference in the economy is a road to nowhere.

Mr. Yanukovych says the necessary conditions for renewed investor faith in Ukraine are ensuring internal stability, overcoming corruption, and establishing clear - and above all - fixed rules governing relations between the state and business.

Turning to international affairs, President Yanukovych said Ukraine is simultaneously an integral part of Europe and of the former Soviet Union and should serve as a non-aligned bridge between both.

He says Ukraine will adopt a foreign policy which will allow it to gain maximum results and beneficial relations with the Russian Federation, the European Union, the United States and others that influence the situation around the world.

Only one former Ukrainian president, Leonid Kuchma, participated in the inauguration ceremony. Defeated presidential contender and Prime Minister Yulia Tymoshenko boycotted the event, having said earlier she does not recognize Mr. Yanukovych as president. However, his immediate predecessor, Viktor Yushchenko, welcomed him later in the presidential building for an official transfer of control of the armed forces.