Ukraine coalition talks hit new obstacle

KIEV, June 12 (Reuters) Negotiations to form a coalition government of backers of Ukraine's ''Orange Revolution'' hit a new roadblock today, with President Viktor Yushchenko's party trading barbs with a prospective junior partner.

Three liberal parties have been locked in talks since an inconclusive March parliamentary election. They hope to regain the lost unity of the mass protests in 2004 against election fraud that propelled the pro-Western Yushchenko to power.

But the negotiations have repeatedly broken down, with the three sides -- the bloc of ex-prime minister Yulia Tymoshenko, the president's Our Ukraine party and the smaller Socialists -- quarrelling over cabinet and other senior posts.

Yushchenko told parties at the weekend to stop arguing and form a government. He solved one protracted row by agreeing that Tymoshenko, his estranged ally, could once again be premier.

But new differences emerged with a Socialist demand that their leader Oleksander Moroz become parliamentary speaker.

''Our Ukraine expresses regret that the personal ambitions of the Socialists' leader have wrecked the talks on creating a coalition,'' the party said in a statement on its Web site.

Further talks, it said, ''have no prospect of success''.

Moroz said he was entitled to the speaker's job by virtue of his support for Yushchenko in the 2004 upheaval and since.

In a statement on his own party's Web site, he said the talks could only prove successful if Yushchenko oversaw them and if business interests were kept clear.

''Staying out of this process cannot be justified and amounts to a political error,'' Moroz said.

''A coalition is not a labour exchange, but a long-term chance for our country. If Viktor Yushchenko does not become involved in the process on behalf of Our Ukraine, the current talks will pitch Ukraine into a new political crisis.'' Yushchenko has seconded his prime minister to head the talks and has only met possible coalition partners on rare occasions.

The stalemate has interfered with government business.

Planned military exercises with Britain were postponed as parliament was unable to give its approval. A proposed visit by US President George W Bush this month had to be put off.

Under new constitutional rules, Yushchenko's powers have been reduced and parliament, in recess as talks proceed, chooses the prime minister.

But the president can dissolve the chamber if it forms no stable coalition within 30 days of its first sitting in late May and a government within a further 30 days.

The talks had been stalled over the president's reluctance to put Tymoshenko back in the job from which he fired her after eight months leading a divided government. But he relented on grounds that her bloc had the most seats among liberal groups.

Reuters SHB GC2022