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Edition: U.S. Article Comments (0) Slideshow Save Email Print Reprints Most Popular Most Shared NEWSMAKER-World's richest man, Slim, a born wheeler-dealer 10 Mar 2010 U.S. herpes rates remain high - CDC 09 Mar 2010 World's mega-rich adding wealth, Carlos Slim No. 1 | Video 10 Mar 2010 High stakes in China's big dig 10 Mar 2010 Markets fall after jobless data, China CPI | Video 10:25am EST NEWSMAKER-World's richest man, Slim, a born wheeler-dealer 10 Mar 2010 FDA rules out bisphosphonate, thigh fracture link 10 Mar 2010 U.S. herpes rates remain high - CDC 09 Mar 2010 World's mega-rich adding wealth, Carlos Slim No. 1 | Video 10 Mar 2010 Wine may help women keep weight in check 08 Mar 2010 Pictures A selection of our best photos from the past 24 hours. Slideshow Ukraine's Yanukovich gets close ally as PM Pavel Polityuk and Natalya Zinets KIEV Thu Mar 11, 2010 8:52am EST Factbox Factbox: Challenges facing new Ukrainian government 6:32am EST Related News Investors see past Ukraine default fears 7:20am EST Ukraine PM nominee is close ally of President 6:32am EST < 1 / 3 > View Full Size KIEV (Reuters) - Ukraine's new prime minister Mykola Azarov, declaring state coffers were empty, promised on Thursday to meet all obligations to the International Monetary Fund and push through a realistic 2010 budget. World President Viktor Yanukovich has moved swiftly to consolidate power since his election last month to end years of dysfunctional government and economic backsliding under the leaders of the 2004 Orange Revolution. "The country has been plundered, the coffers are empty, state debt has risen threefold," Azarov, a former finance minister and a close Yanukovich ally, told parliament shortly before deputies confirmed his appointment. Battered by the economic downturn, Ukraine needs to adopt a 2010 budget and restart talks with the International Monetary Fund on a suspended $16.4 billion bail-out package. Azarov said he would invite the IMF to visit the country 'as soon as possible' and pledged to redraft and get approval for a realistic version of the much-delayed budget. The IMF will watch closely how Ukraine handles the budget after a series of spending blowouts, backed by Yanukovich's Regions Party, derailed the bail-out package. The IMF held back a $3.5 billion tranche expected last November after parliament increased minimum wages and pensions by up to 10 percent. Azarov said he hoped the IMF would resume lending, but added: "We hope that this program will be broadened and will be reviewed, taking into consideration realities in our country." He said Ukraine had to repay 44 billion hryvnias ($5.5 billion) in domestic debt by the end of the year, a challenge he described as very serious. DIVIDED COUNTRY Azarov is seen as a safe pair of hands but no radical reformer. He gives Yanukovich a reliable ruling partner after the infighting that split the alliance that emerged from the Orange Revolution. Yanukovich needed a new ruling coalition to avoid calling a snap parliamentary election. But the coalition announced on Thursday between the Regions Party, the Communists and the Litvyn bloc relies on the support of several deputies outside those factions for its 235-seat majority, and it remains to be seen how stable this will be. Russian-born Azarov replaces Yanukovich's rival Yulia Tymoshenko, who was ousted in a vote of no-confidence last week. A powerful orator, she could yet prove a thorn in the government's side from opposition, having refused to recognize Yanukovich's election. Tymoshenko said the new government was "made up completely of Ukrainian oligarchs," or powerful tycoons. "I predict the first thing they will do is to divide amongst themselves the financial spoils ... and the strategic state assets for shady privatization," she told a news conference. The country of 46 million people is split between a Russian-leaning south and east and a west and center inclined more to the west. Yanukovich's victory tilted the former Soviet republic back toward Russia, source of the gas that runs through Ukraine to Europe. Parliament endorsed his nomination of Ukraine's ambassador to Moscow, Kostyantyn Khryshchenko, as foreign minister and former Navy commander Mykhailo Yezhel as defense minister. It also appointed old Azarov associate Fedir Yaroshenko as Finance Minister and Socialist Party deputy and former interior minister Vasyl Tsushko as Economics Minister. Former central bank chairman Sergey Tigipko, who came a strong third in the first round presidential election on a reformist platform, is one of six deputy prime ministers. (Writing by Richard Balmforth and Matt Robinson; editing by Mark Trevelyan)) World Add a Comment More from Reuters Jobless claims fall, trade gap narrows WASHINGTON (Reuters) - The number of U.S. workers filing new applications for unemployment benefits fell slightly less than expected last week, hinting at a slow labor market recovery. Chile aftershock measured at 7.2 magnitude BP to pay Devon $7 billion for oil fields 3D projector bottleneck may leave cinemas reeling Exxon Mobil boosts 2010 spending 4 percent PM Maliki leads Iraq vote in two provinces » More Top News The race to the bottom Keeping currencies competitive is among the last tricks left in the policy bag, but nudging markets can be a dangerous game. Full Article U.S. seen vulnerable to rate shocks Economists trim U.S. growth forecast ECONOMY High stakes in China's big dig To see the high-risk bet China is making to power its growth, look at the jumble of wires and concrete under its streets. Full Article Trade data point to rise in yuan Factbox: Hints of division over yuan China © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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