Ukraine opposition pulls out of talks

KIEV - Ukraine's opposition, whose insistence that it was cheated out of victory in a presidential election has brought thousands onto the streets, has rejected talks in favour of "people power".

Its withdrawal from negotiations crushed earlier optimism that the outgoing president, Leonid Kuchma, might back a re-run to end the standoff over the election of his protege, prime minister Viktor Yanukovich.

International mediators headed back to Kiev for talks on Wednesday -- the day when parliament and the Supreme Court could hand down their own verdicts on the dispute.

"The authorities, Kuchma and Yanukovich, used the talks to cheat," opposition leader Taras Stetskyv told thousands of supporters of the losing presidential candidate, Viktor Yushchenko, in central Kiev.

"That is why the (opposition) Committee for National Salvation has decided to pull out of the talks. We are stopping talks with the authorities. We will talk with them only from the position of people power."

The opposition has massed tens of thousands of protesters in Kiev to press its demands that the November 21 presidential run-off be annulled because of fraud. It wants a re-run next month.

Like Yanukovich's side, it has not mustered enough momentum to deliver a final blow, and is placing its hopes on the Supreme Court and a parliamentary debate.

The court on Wednesday resumes deliberations on Yushchenko's appeal against the result, focusing on whether irregularities make it invalid. It could even declare Yushchenko the winner, though lawyers said this was unlikely.

If it does annul the election, parliament could decide to hold a new one. The opposition also wants parliament to sack Yanukovich as prime minister before any fresh election.

Polish President Alexander Kwasniewski, Lithuanian President Valdas Adamkus and Boris Gryzlov, a close ally of Russian President Vladimir Putin, were all due in Kiev on Wednesday to try to keep talks between the two antagonists on track.

All took part in discussions last week along with EU foreign policy chief Javier Solana, who arrived on Tuesday.

Gryzlov said Ukraine was heading for breakup or bloodshed over the election deadlock.

But Solana, who headed straight to Kuchma's residence from Kiev airport, told reporters: "I am sure that with goodwill from everybody we will make progress in the coming days."

Earlier in the day, opposition protesters surged towards the parliament building after the assembly failed to proceed with a motion to dismiss Yanukovich and his government.

The parliament speaker appealed to crowds not to storm the building, promising a decision on Wednesday.

The standoff has threatened to break apart the country, independent for just 13 years and lying between an expanded European Union and its master for many centuries, Russia.

Demonstrators in Yanukovich's stronghold of eastern Ukraine, more economically powerful and Russian-speaking than Yushchenko's Ukrainian-speaking base in the west, have denounced bids to overturn his win and issued calls for "autonomy".

Political tension began to bite into the economy, forcing the central bank to introduce emergency measures to stop people pulling money out of banks and triggering a financial crisis.

Kuchma, his 10-year rule tarnished by scandal and poor economic management, had suggested on Monday he might bow to pressure at home and abroad to allow a fresh presidential poll.

It was still not clear whether he meant a new run-off, which the opposition want, or a re-run of the entire process.

Russia, which had backed Yanukovich, seemed to come round to the idea of a fresh vote. Putin and German Chancellor Gerhard Schroeder said they would respect the outcome of any new poll, according to a German government statement. A Kremlin statement made no mention of a new poll.

Though the official winner, Yanukovich has seen his fortunes decline as the feud has worsened. He has been unable to shake off charges that he won by cheating and some analysts believe that, if there is a new poll, Kuchma may drop him.

- REUTERS