Former Ukrainian Premier Says Will Meet President On Coalition

KIEV, Ukraine -- Former Ukrainian Premier Yulia Timoshenko said she will meet President Viktor Yushchenko today to discuss creation of a coalition government after parliamentary elections failed to give any party a majority.

Yulia Timoshenko at a press conference
Yushchenko, whose party lay in third place with 15.6 percent, according to official results, may have to turn to Timoshenko to form a government. With 63 percent of the vote counted, Timoshenko's bloc had 23 percent, trailing only the Regions Party of Viktor Yanukovych with 30 percent.

Five of 45 parties represented in the vote will probably enter the 450-seat parliament after March 26 elections, results show. Timoshenko, who was fired by Yushchenko six months ago after the two fell out over policy and allegations of corruption within Timoshenko's team, said she would welcome a coalition with the president's Our Ukraine party.

"I will make every attempt to create a coalition," Timoshenko, 45, said yesterday evening, according an interview broadcast on television station 5. A coalition between Our Ukraine, the Socialists and her alliance would have about 255 seats in the parliament, more than the minimum 226 needed for a majority, Timoshenko said.

There was no announcement about what time or where the two would meet and Yushchenko's office had no comment on her remarks.

Regions Party

Regions Party lawmaker Ihor Shkyria said in an interview with channel 5 his party is prepared to told talks "with everybody." He estimated Regions will have more than 200 seats and would accept a coalition with Yushchenko's party. Any cabinet that doesn't include Regions won't be stable, he said.

Yushchenko, who swept to power 15 months ago in the Orange revolution along with Timoshenko, lost the confidence of many voters who say he failed to match promises to root out corruption and boost living standards.

With parliament being given the power for the first time to name a premier and cabinet, Yushchenko must make a deal with one of the opposition parties if he wants to retain a strong voice in government, said Katya Malofeeva, analyst at Renaissance Capital in Moscow, in an interview yesterday.

"This is wrong to delay signing a coalition, even by an hour, because that increases chances for a grand coalition between Our Ukraine and the Regions Party," Timoshenko said. "I understand that Our Ukraine is in deep shock after the results were released. And still I would like to warn the powers not to play with such things."

Timoshenko wants to join the European Union and the World Trade Organization and reverse some former state-asset sales conducted by former President Leonid Kuchma. She has said today she wants to work with Yushchenko and not Yanukovych, who favors closer ties with neighboring Russia.

Given Timoshenko's problems with Yushchenko, 52, and her proposals to regulate some consumer prices, some economists said it would be better if the president looked past his former ally and reached out instead to the 55-year-old Yanukovich.

Yushchenko beat Yanukovich in a re-run of disputed presidential elections in December 2004 that sparked massive street protests.

Source: Bloomberg