Ukraine parliament reconvenes, no end to turmoil

KIEV, June 14 (Reuters) Ukraine's parliament resumed sitting today without an agreement on a ruling government coalition despite a prolonged recess intended to give parties time to come up with a deal.

Disputes over top government roles have bedevilled discussions between President Viktor Yushchenko's Our Ukraine party, fiery ex-prime minister Yulia Tymoshenko's bloc and the smaller Socialists since parliamentary elections in March.

The impasse has prompted the pro-Western president's allies on Tuesday to threaten to consider teaming up with the pro-Moscow Regions Party under Viktor Yanukovich, who Yushchenko defeated in the so-called Orange Revolution.

But politicians denounced such an idea, hoping to restore the shattered unity of the mass 2004 ''Orange'' protests against rigged election results which showed Yanukovich had won the presidential election.

The protests and international pressure forced a second presidential run-off election in which Yushchenko -- the leader of the Orange movement -- was declared the winner.

His government's success has been clouded by accusations of corruption and incompetence. He dismissed fellow Orange revolutionary Tymoshenko as prime minister in Sept. 2005.

''Some politicians may lose from the coalition with Tymoshenko's bloc and Socialists. But a coalition with the Regions Party means losing the country,'' Mykola Katerynchuk, an Our Ukraine member opposed to such a deal, told deputies.

Tymoshenko dismissed as a ''smokescreen'' arguments by Yushchenko's party that talks had failed over a disagreement about the job of parliamentary speaker.

''They had no intention of creating a coalition. What they intended was to ruin and discredit the entire process,'' she said of Our Ukraine leaders. ''Democracy which failed to develop has now ceased to exist.'' Socialist Party leader Oleksander Moroz tried to defuse tensions by abandoning his insistence on being made speaker.

Any new breakdown between ''Orange'' parties could open the way for Yanukovich to enter a government coalition. That would leave Tymoshenko out in the cold.

The Regions Party came first in March's vote with 186 seats in the 450-member assembly. But it was outscored by the combined tally of three ''Orange'' parties and cannot govern on its own.

It has suggested it could join a coalition with various political forces that would be acceptable to Western investors.

Regions Party members pressed the chamber to move quickly towards elections of parliamentary leaders to end the deadlock.

Tymoshenko and Moroz have asked Yushchenko to play a more direct role in building a government coalition by the end of June, as required by the constitution. New rules have reduced presidential powers and made parliament responsible for choosing the prime minister.

The president, committed since his election to moving Ukraine closer to Europe, appeared to have resolved an earlier row last week by agreeing -- after weeks of reluctance -- that Tymoshenko could become prime minister again.

REUTERS CH RK1650