Yushchenko dissolves parliament, sets general elections for December 7

President Viktor Yushchenko, in a pre-recorded televised message last night, announced the dissolution of the Verkhovna Rada and today, in a decree posted on his website, called parliamentary elections for December 7. Yushchenko invoked his constitutional power after the five political forces (Party of Regions, Yulia Tymoshenko Bloc, Our Ukraine-Self Defence Bloc, Lytvyn Bloc and Communist Party) failed to form a new coalition within one month of the breakup of the last alliance, which officially took place on September 16. Volodymyr Verbyany: From the political view, the Rada’s dissolution could be a logical attempt at resolving the deadlock that has paralyzed Ukraine’s parliament. But from the economic point of view, amid the C/A deficit concerns and exchange rate volatility, and particularly considering the population’s staunch opposition to new elections, the call to dissolve parliament is a very risky move. Looking at current poll numbers, both the Party of Regions and Tymoshenko blocs have good chances of increasing their seats in parliament – while the pro-presidential Our Ukraine party risks not breaking the 3% threshold to get in. A number of smaller parties will again stand in the election, and considering voter’s distain for current political personalities, they could very well make the cut.