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September 8, 2005

Ukraine's Yushchenko Fires Government

Filed at 8:24 a.m. ET

KIEV (Reuters) - Ukraine's President Viktor Yushchenko sacked his government on Thursday as the team which led the ''Orange Revolution'' less than a year ago broke apart amid infighting and accusations of mass graft.

Yushchenko, who has pledged to stamp out the corruption widespread under his long-serving predecessor Leonid Kuchma, told a news conference he would ask regional governor Yury Yekhanurov, 57, to form a new team.

But he sought not to alienate completely the charismatic Yulia Tymoshenko, a key figure in the mass protests late last year that propelled him to power and who until Thursday had been prime minister since his election in January.

``These people remain my friends. It is very difficult but today I must to remove this Gordian knot,'' Yushchenko said, accusing his outgoing government of lacking team spirit.

``I set one task for the new team -- to work in a united team. I do not want any more the intrigues between two or three people that were determining the state policy.''

He also accepted the resignation of close ally Petro Poroshenko from his powerful security post and suspended another aide -- both of whom had been accused of involvement in graft.

In sacking Tymoshenko, whose fiery oratory brought thousands out on the streets in last December's pro-Western ''Orange Revolution,'' Yushchenko moved decisively to end a crisis that has threatened his credibility.

Ukraine's state security (SBU) chief Oleksander Turchinov -- another Yushchenko ally -- also tendered his resignation.

The crisis follows months of tension between Yushchenko and Tymoshenko over Ukraine's economic direction and came to a head last Saturday when his chief of staff quit alleging deep corruption in the administration.

``We need to halt the disappointment in society and make sure that the ideals (of the Orange Revolution) are not cast into doubt,'' he said.

The allegations of graft hurt a government already tarnished by sharply lower economic growth, rising inflation and inconsistent policies.

Yekhanurov, governor of industrial Dnipropetrovsk region, is a long-time supporter of Yushchenko. He was deputy to Yushchenko while the latter was prime minister in 2000.

He is seen as a pro-reform technocrat and occupied various government posts under former President Kuchma.

The prime minister is set to acquire additional powers, at the expense of the president, from January when changes to the constitution come into force.

A simple majority of 266 votes in the 450-seat parliament is required to confirm Yekhanurov in his post. However, pro-Yushchenko forces do not have a stable parliamentary majority.

YEKHANUROV - STOP-GAP?

Since independence from the Soviet Union in 1991, Ukraine has consistently been rated one of the world's most corrupt countries by international anti-graft bodies.

Some analysts saw Yekhanurov as a stop-gap prime minister. Others said the stage was set for a show-down between Yushchenko and Tymoshenko. There was no immediate word from Tymoshenko herself.

``Sacking Tymoshenko also sets things up for a clash between Yushchenko and Tymoshenko in the March 2006 parliamentary elections, which will split the reform camp,'' said Tim Ash, emerging markets analyst at Bear Stearns in London.

``With clear evidence that the economy is slowing, Ukraine needs strong government and good coordination of economic policy,'' Ash said.

One of the officials who resigned -- Nikolai Tomenko, a deputy prime minister -- said he could no longer stand the corruption among the president's aides.

``I do not want to share responsibility with those who have created a system of corruption,'' Tomenko said.

Highlighting the rift between Yushchenko and his former revolutionary ally, Tomenko said there were in effect two governments in Ukraine -- one run by Tymoshenko and the other by Poroshenko.

``In the short-term, the government's resignation is likely to increase volatility on the currency market,'' said Oleksander Sandul, analyst at Foil Securities.

``But in the long-term, we look at it more optimistically. It says that the Orange Revolution was not in vain, that we are moving along the path of democratic changes.''

http://www.nytimes.com/reuters/international/international-ukraine.html?pagewanted=print

 


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