Ukraine Formin Sacked, Govt Looking Frail

`This dismissal will lead to yet more confrontation between the president and prime minister,` said analyst Volodymyr Fesenko.

Ukraine's foreign minister was sacked by parliament on Tuesday, raising the risk of a further split between president and prime minister and exposing the fragility of a coalition government struggling with deep economic crisis.

The dismissal of Volodymyr Ohryzko, an ally of President Viktor Yushchenko, followed three weeks after the finance minister resigned, citing a falling-out with Prime Minister Yulia Tymoshenko over economic policy.

The global crisis has battered Ukraine's economy, with industrial output down more than 30 percent year-on-year, negative growth of 6 percent expected in 2009 and the hryvnia currency losing 50 percent of its value at one point last year.

"This dismissal will lead to yet more confrontation between the president and prime minister," said analyst Volodymyr Fesenko of the Penta think tank.

"But the main problem will be for the future of the coalition. The situation could become critical and explosive for the coalition and lead to a split or even its destruction."

Stalemate in parliament, rooted in deep personal animosity between erstwhile "Orange Revolution" allies Yushchenko and Tymoshenko, could hinder passage of legislation needed to tackle the crisis, including amendments to a budget criticised by the IMF and laws supporting the banking sector.

Protracted political uncertainty, as well as a recurring dispute with Russia over gas deliveries, has made foreign investors wary of investing in Ukraine.

A total of 250 members in the 450-seat chamber voted to sack Ohryzko, a pro-Western career diplomat and one of two ministers named by President Yushchenko.

Deputies accused Ohryzko of damaging Ukraine's interests by an aggressive attitude to powerful ex-Soviet neighbour and energy supplier Russia and of bungling a territorial dispute with Romania. The International Court of Justice drew a new Black Sea border between Ukraine and Romania last month, ceding considerable oil and gas drilling rights to Bucharest.

Tuesday's vote carried only after 49 members of the premier's group joined with opposition parties more sympathetic to Moscow. But it was unlikely to change Ukraine's overall foreign policy goal of seeking closer ties with the West.

Yushchenko's spokeswoman criticised parliament's vote as "untimely and groundless". But it was uncertain what action the president might take, with options including refusing to recognise the decison or re-submitting Ohryzko for approval.

TEMPORARY TRUCE?

With politicians eyeing their chances in a presidential election next January, the president and prime minister engage in constant sniping, though all sides succeeded in finding common ground this week to keep intact a $16.4 billion International Monetary Fund (IMF) loan.

Leaders agreed on Monday on a common stand favouring further steps to counter the crisis, which has hit Ukraine's steel and chemicals industries. Two international rating agencies have downgraded Ukraine and the Fund has suspended the loan's second tranche on grounds that Ukraine has failed to implement an agreement, mainly by approving too large a budget deficit.

But analyst Fesenko said that agreement amounted to "not so much peace as a temporary truce. We need the IMF credits."

The coalition underpinning Tymoshenko's government is made up of three groups in parliament, but Tuesday's vote showed it was fragile at best.

Ohryzko became foreign minister in late 2007, when Tymoshenko became premier for the second time.

Members said it was his approach that led to the international court ruling in The Hague on sea borders with Romania. They also denounced criticism of Russia, including a threat by the foreign ministry last month to expel Moscow's veteran ambassador for "undiplomatic" comments.

Anatoly Hrytsenko, a former defence minister and now a senior parliamentarian, said Ohryzko had angered members by circulating a memo to embassies highly critical of the premier.

"The situation shows once again how weak this coalition is, with no unity," he told reporters outside parliament. "There will be serious problems in this coalition...and it will be harder and harder for parliament to work."