Ukraine's Yushchenko proposes rival Yanunkovich as PM

KIEV, Aug 3 (Reuters) Ukraine's President Viktor Yushchenko today said he would propose his opposition rival Viktor Yanukovich as Prime Minister.

''I have taken the decision to put forward Viktor Yanukovich for the post of Ukraine's Prime Minister,'' Yushchenko said in a televised address.

Yushchenko's decision to appoint Yanukovich, the man he defeated in the 2004 ''Orange Revolution,'' should put an end to months of political paralysis in Ukraine during which rival parties struggled to agree on a coalition government.

The president said he decided to propose Yanukovich after the opposition leader signed up to a declaration of principles safeguarding Ukraine's policies of closer integration with Europe and market reforms.

REUTERS VJ RK0500