Deal reached on Ukraine election reform, opposition says

KIEV - Ukraine's opposition says it has reached a deal that could end a stand-off with outgoing President Leonid Kuchma's government, smoothing a re-run of rigged presidential polls.

Moscow-backed Prime Minister Viktor Yanukovich was declared winner of November's vote, plunging the ex-Soviet state into a fortnight of mass demonstrations in support of West-leaning challenger Viktor Yushchenko. The country's supreme court ruled last week that the poll had been rigged.

The apparent deal to break the deadlock will be sealed in a parliamentary session called for Tuesday.

"If all agreements made today are carried out, tomorrow there's a big likelihood that we will pass changes in the constitution, pass changes to the election law, that the government will resign and there will be another central election commission," said opposition leader Petro Poroshenko on Monday.

In a potential boost for Yushchenko's chances, Russian President Vladimir Putin, a key player who had previously openly backed Yanukovich, said he would work with any elected leader.

The opposition demanded changes to the election law and election commission to prevent vote rigging in a repeat of the final round run-off due on December 26, as well as the dismissal of Yanukovich after a no confidence vote in parliament.

Kuchma made the demands conditional on passing constitutional reforms that would trim the president's powers -- a deal pro-Yushchenko parliamentarians rejected on Saturday.

Under the deal brokered in parliament, Kuchma will attend a session at 12.00 noon (10:00 a.m. British time) and bring a decree dismissing Yanukovich's government. The opposition will agree to vote for constitutional reform along with election law changes.

PREMIER MAKES NO MENTION OF RESIGNATION

Yanukovich himself, however, made no mention of resignation.

He told reporters in his first comments since a Supreme Court ruling on Friday that annulled the November 21 vote that he would take a "break" to campaign for the new vote.

Yushchenko has urged hundreds of thousands of protesters in the streets to keep up pressure on Kuchma with mass rallies and a blockade of government offices. The opposition said the blockades would be lifted if the electoral reform was passed.

The country's already weak economy has been hit and its central bank urged the government on Monday to take measures to prevent further price rises after a surge in demand for dollars.

Putin's first comments on Ukraine after the Supreme Court ruling were a climb-down. He had campaigned for Yanukovich and congratulated him on winning before the result was officially announced.

"We accept ... the wishes of any nation in the post-Soviet territory and will work with any elected leader," RIA Novosti news agency quoted Putin as saying during a visit to Turkey.

Russia is concerned Ukraine will slip out of its orbit of influence and Putin suggested Moscow would not accept a revolution on its doorstep.

"Some politicians say 'we'll seize power anyway'. We in Russia cannot support such developments, even if someone wants to call it democracy," the Interfax agency quoted him as saying.

Speaking as international mediators arrived in Kiev, Putin also said Russia would seek to help solve the country's political crisis without interfering in its affairs.

European Union foreign policy chief Javier Solana started round-table mediation talks between Kuchma, Yanukovich and Yushchenko. The Polish and Lithuanian presidents and a Russian envoy were also participating, although it was not clear what the exact agenda of the mediators was.

The European Union, which along with the United States has been at odds with Russia over the crisis, backed their call for parliament and Kuchma to adopt a new election law. Putin, however, said he opposed legal changes.

The heart of Kiev remained clogged with protesters. Civil servants queued up again outside their offices on Monday to see if the protesters would let them through.

"The whole system has been paralysed. It's like a broken computer," said one of several hundred finance ministry officials blocked by protesters from entering her office.

- REUTERS