THE LONG-RUNNING feud between Ukraine president Viktor Yushchenko and prime minister Yulia Tymoshenko paralysed the passage of legislation yesterday aimed at saving the country from financial collapse.
A $16.5 billion (€13.2 billion) loan from the International Monetary Fund (IMF) is dependent on Ukraine adopting measures to support the country's ailing currency and banks, but Ms Tymoshenko's allies prevented parliament from doing business over fears Mr Yushchenko's party would push through Bills for an election she opposes.
Ms Tymoshenko says the December election - Ukraine's third in as many years - would be "criminal". She accuses the president of emphasising the poll rather than anti-crisis reforms.
Mr Yushchenko claims his premier is jeopardising the IMF package by using cynical tactics.
After a conversation with IMF chief Dominique Strauss-Kahn, Ms Tymoshenko said they had agreed "proper implementation of the programme depends on providing . . . a stable government and acting parliament".
"The sides emphasised the necessity of the parliament's passing of the key measures as soon as possible to return Ukraine to economic and financial stability, strengthen confidence and diminish exposure to the effects of large-scale foreign crises."
Ms Tymoshenko's supporters swarmed around the parliamentary speaker's rostrum yesterday, preventing a debate and vote on the IMF-stipulated reforms.
As foreign cash has flowed out of Ukraine, the hryvnia currency has slipped to all-time lows and banks have wobbled as people rush to withdraw savings. Demand for steel - 40 per cent of Ukrainian exports - is down as construction slows around the world.
