Rada forms Party of Regions-led coalition

This morning deputies in Ukraine’s Verkhovna Rada formed the “Stability and Reform” coalition led by the pro-presidential bloc Party of Regions. The motion was approved by 235 deputies, including the Lytvyn Bloc, Communist Party and a few deputies from the Tymoshenko and Our Ukraine Blocs. Yesterday President Viktor Yanukovych signed into law amendments to parliamentary procedures that allowed for the formation of parliamentary coalitions by individual deputies. Brad Wells: Ukraine’s Constitutional Court ruled as recently as September 2008 that “roll your own” coalitions composed of individual deputies were unconstitutional. Yanukovych said he would ask the court to determine the constitutionality of the new amendments urgently in order to legitimize the new coalition & government. The appointment of a new Prime Minister and Cabinet appears to be imminent now; the coalition has reportedly put forth Regions leader Mykola Azarov’s candidacy for Prime Minister. We view the formation of a coalition today somewhat skeptically, and are refraining from placing any bets until the Constitutional Court weighs in. If Rada parties are forced to play by the old rules, the specter of early parliamentary elections returns.