Ukraine's Yushchenko proposes rival Yanunkovich as PM
By Olena Horodetska -- Reuters
Thursday, August 3, 2006----
KIEV (Reuters) - Western-leaning Ukrainian President Viktor Yushchenko proposed opposition leader Viktor Yanukovich as prime minister on Thursday in a deal that is likely to hand over huge powers to his pro-Moscow rival.
Yushchenko said he decided to propose Yanukovich -- the man he defeated in the 2004 "Orange Revolution" -- after extracting written guarantees that he would not try to overturn market reforms and pro-Western policies.
But there were no details on what concessions were made by Yanukovich, who favours closer ties with Moscow. Parliament was expected to vote him in as prime minister later on Thursday.
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As president, Yushchenko retains control over foreign policy, defence and national security. But observers say he will now struggle to push through his policies.
He had been pressing for his allies to be given key posts in a Yanukovich-led Cabinet to preserve his influence. No details of who will be in the government have so far emerged.
Yanukovich, from Russian-speaking east Ukraine, is less keen than Yushchenko on the country's push for NATO and European Union membership -- key tenets of the "Orange revolution."
His party aides have said they will not block Ukraine's preparations for NATO membership. That is unlikely to happen for at least five years and all sides agree final accession will have to be put to a referendum.
On economic policy Yanukovich is seen as a pragmatist. He has said he will lower taxes for business, including the big industrial exporters that drive Ukraine's economy. Powerful business "oligarchs" are among his supporters.
He is also expected to use the central bank to weaken the hryvnia currency, which will also favour exporters.
Market analysts are concerned though that he will allow a return to cronyism and lack of transparency in economic policy. Challenging these problems was seen as one of Yushchenko's few achievements.
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