UKRAINE'S ORANGE REVOLUTION LOSES ITS LUSTRE

THE DAILY TELEGRAPH

September 7, 2005

By Adrian Blomfield in Moscow

President Viktor Yushchenko of Ukraine was yesterday fighting to defend the credibility of the country's pro-western Orange Revolution in his worst crisis since sweeping to power last year.

Simmering disagreements in his shaky coalition have exploded since his powerful chief of staff quit, accusing senior officials of corruption. Even his allies have seized on the political disarray, claiming that little has changed since last winter's dramatic battle for control of the streets of Kiev.

Rumours about the fate of his government swirled through the capital, with one television station reporting the impending resignation of the charismatic prime minister, Yulia Timoshenko.

Another news agency said that the entire cabinet could be forced to step down only months after it was formed.

A spokesman for the president, already weakened by the resignation of his leading aide and the allegations of corruption, dismissed the reports as "speculation".

Mr Yushchenko was locked last night in emergency talks with Mrs Timoshenko and other officials on the government's inner working. "There is a need to stop all quarrels," his spokesman said.

The power struggle was in marked contrast to the idealism born of last winter's revolution, when Mr Yushchenko's supporters, draped in orange, refused to accept the results of elections widely viewed as fraudulent.

Earlier in the year Mr Yushchenko had barely survived an apparent poison attempt and his face was still scarred by the failed assassination. Allegations of government cronyism and reports of the freewheeling lifestyle of the president's son have since hurt Mr Yushchenko's reputation as a reformer.

Now Mr Oleksandr Zinchenko, a principal architect of last year's peaceful protests, has resigned in a blaze of publicity, blaming his decision on the prevailing malaise.

"Unless these processes are stopped in a tough and timely manner, a counter-revolution may happen in this country," Mr Zinchenko said.

There was more trouble for the president yesterday as another key ally, the parliamentary speaker, Volodymyr Lytvyn, also rounded on the government.

"The situation in Ukraine is much worse, even in comparison with the last, difficult year," he said as parliament returned from its summer recess.

"It seemed we were doing everything in a new way, but most things are just like they were during [former President Leonid] Kuchma's regime," Mr Lytvyn said.

Infighting in a coalition dominated by powerful personalities has slowed market reforms that would have encouraged foreign investment and lifted Ukraine's flagging economy.

President Vladimir Putin, of Russia, has accused Mr Yushchenko's government of being riddled with corruption. Mr Putin likened former Soviet states that sought to break free from Moscow's sphere of influence to "banana republics where he who shouts loudest wins".

But analysts say that, despite the current crisis, substantial progress has been made in Ukraine. Social benefits, especially to miners, have increased and small businesses are beginning to flourish.