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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Dubai police chief says to seek Netanyahu arrest 02 Mar 2010 Obama to push healthcare overhaul into final act 7:38am EST Jay Leno plays it safe in "Tonight Show" return 02 Mar 2010 RPT-In Texas governor showdown, nice doesn't cut it 02 Mar 2010 Senate breaks logjam to restore jobless aid 5:52am EST Foodborne illness costs U.S. $152 billion annually: study 10:10am EST China says has not allowed imported GMO grain seeds for planting 02 Mar 2010 Dubai police chief says to seek Netanyahu arrest 02 Mar 2010 Gene links to celiac disease may help drug search 28 Feb 2010 Fish oil makers, drugstores, sued over supplements 02 Mar 2010 Ukraine's government falls in no-confidence vote Yuri Kulikov and Natalya Zinets KIEV Wed Mar 3, 2010 9:11am EST Factbox Factbox: Key political risks to watch in Ukraine 9:11am EST Related News Timeline: Ukrainian politics since the 2004 Orange Revolution 9:11am EST Ukraine's President Viktor Yanukovich listens to questions during a joint news conference with European Parliament President Jerzy Buzek after their a meeting in Brussels March 1, 2010. Credit: Reuters/Thierry Roge KIEV (Reuters) - Ukraine's parliament dismissed the government of Prime Minister Yulia Tymoshenko on Wednesday, handing arch rival President Viktor Yanukovich the difficult task of stitching together a new ruling coalition. World Deputies passed a motion of no confidence in Tymoshenko's administration, with 243 out of 450 voting in favor. The fall of the government came almost a month after Yanukovich defeated Tymoshenko, co-architect of the 2004 pro-Western Orange Revolution, in a bitter presidential run-off, a narrow victory that has yet to restore much-needed stability. Yanukovich's Regions Party will now seek to form its own coalition within 30 days and a government within another 60, or face a snap parliamentary election. "The (coalition) talks are not simple but I think they will be finalized in the coming days," Mykola Azarov, a close ally of Yanukovich and a likely candidate for the post of prime minister, told reporters after the vote. Even if a coalition emerges, the fractious nature of Ukraine's parliament and the limited powers of the presidency mean that the country -- split between a Russia-leaning east and south and a Western-friendly west and center -- may yet face further political instability. "It's just a continuation of the problem," said Oleksander Pchela, a 20-year-old student in Kiev. "Tymoshenko will enter the opposition and demand new elections. There's no end in sight while people vote for personalities but not for ideas." The nation of 46 million people desperately needs strong government to tackle a debilitating economic crisis that saw GDP contract by 15 percent in 2009, and to restart talks with the International Monetary Fund on a $16.4 billion bailout package. The government says it does not expect IMF funds to be released before the second half of the year, leaving a hole of $3-5 billion per quarter that Ukraine must fill to cover government spending and debt payments. CABINET WALKOUT Ukrainian assets remained stable after the motion was passed -- the hryvnia traded at 7.975/$ at the same level as in the morning, the Ukrainian Equity Index edged 0.5 percent higher to 1,822 points, while benchmark bonds were unchanged. The bonds and credit default swaps -- tradeable instruments that insure against a Ukrainian default -- have strengthened in recent days however, signaling that investors have high hopes the political dust will settle soon. "The uncertainty surrounding the politics is likely to bring negative sentiment in the short-term. However, these actions were deemed inevitable and the fact that political processes are moving relatively quickly is encouraging," Phoenix Capital, a Kiev-based brokerage, wrote in a note. Wednesday's vote marked the death knell for the fractious coalition that emerged from the Orange Revolution, when street protests overturned Yanukovich's victory in a rigged election. Tymoshenko has refused to recognize Yanukovich's February 7 victory, which is expected to tilt the former Soviet state back toward Russia. She was typically defiant, telling parliament: "One can say that today this person, Yanukovich, presents a threat to (Ukrainian) independence, a threat to its territorial integrity, to democracy and freedom of speech." Tymoshenko said her cabinet would not remain in a caretaker capacity, spelling further uncertainty. Her cabinet was meeting on Wednesday afternoon in a session closed to the media. Yanukovich's party is the biggest bloc in the chamber with 171 seats but is well short of the required 226 majority. Seven of Tymoshenko's bloc voted to dismiss the government, but only 15 of 71 members of the Our Ukraine bloc of former President Viktor Yushchenko -- a critical bloc when it comes to forming the next coalition -- backed the motion. Besides Azarov, Yanukovich has named reformist former central bank chairman Sergey Tigipko and former Finance Minister Arseniy Yatsenyuk as possible prime ministers. Gleb Vyshlynsky, an analyst at GfK Ukraine, said a meeting of minds was likely between the financial backers of Yanukovich's Regions Party and the deputies of Our Ukraine, who both want to avoid a potentially costly snap election. "There is a 70 percent chance that they will manage (to form a government) in the coming week or two," he said. World More from Reuters Charles Rangel to quit key tax post WASHINGTON (Reuters) - The embattled chairman of the tax-writing House of Representatives Ways and Means Committee, Charles Rangel, said on Wednesday he will step aside temporarily as chairman after being admonished by a House ethic panel. Obama to push healthcare overhaul into final act Warehouse clubs Costco, BJ's miss profit estimates Service sector expands in February: ISM survey U.S. probes hedge fund bets against euro: source Stocks up after ISM services data | Video » More Top News Greece's struggle far from over Greece's austerity plan may encourage its European neighbors to lend a hand, but markets are not convinced the Greek tragedy is over. Full Article | Related Story Greece backs sweeping austerity plan Highlights of the measures Timeline: Greece's economic crisis Global Markets U.S. dollar: Best of a bad bunch Only a few months ago, everyone was busy worrying about the dollar sinking. Then Greece happened. Funny how times change. Full Article Dollar's prognosis is far from rosy Currencies © 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. 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