KIEV, Dec. 24 – President Viktor Yanukovych on Monday appointed the Cabinet of Ministers, mostly promoting to key positions people loyal to his family, a sign of his trying to strengthen his own authority.

Serhiy Arbuzov, the governor of the National Bank of Ukraine, who is thought to be a key figure in the Family group, was appointed as the first deputy prime minister, according to the president’s office.

The Family group, led by Oleksandr Yanukovych, the elder son of the president, has been rapidly expanding its business empire through acquisitions of assets in the banking, telecom, commodity and real estate sectors.

Yanukovych reportedly considered nominating Arbuzov as the prime minister earlier this month, but the plan met resistance from senior Regions Party members, who preferred reappointment of the more predictable Mykola Azarov to the post.

Yanukovych did not need support of Parliament to make the latest appointments in the Cabinet, according to the constitution.

“Today Yanukovych de-facto appointed two governments,” Yulia Tymoshenko, a jailed opposition leader and a former prime minister said in a statement on Monday. “The first one, led by Arbuzov, will be controlling all ministers.”

“The second one will consist of Azarov only, who has got a great portfolio but has no subordinates,” Tymoshenko said. “It’s like having general's epaulets, but being left without an army.”

Other important changes in the Cabinet show that Yanukovych has tried to reduce the clout of a powerful political and business group led by Ukrainian billionaire Dmytro Firtash.

Yuriy Boyko, a former Energy and Coal Industry Minister and a close Firtash ally, was appointed as the deputy prime minister, but the post will not have much of a real authority.

Boyko was replaced with Eduard Stavytskiy, a former Environment and Natural Resources Minister, a close ally of the Yanukovych family, who was appointed the energy and coal industry minister.

Another Firtash ally, Kostiantyn Hryshchenko, a former foreign minister, was also promoted to the post of deputy prime minister, but again the post will not have much of authority.

Hryshchenko was replaced with Leonid Kozhara, a senior member of the Regions Party who had been busy over the past 12 months hiring international PR agencies trying to improve the image of Yanukovych on the West.

Serhiy Tyhypko, a deputy prime minister and the social policy minister and Valeriy Khoroshkovskiy, a former first deputy prime minister – both allies of Firtash – were dismissed. Tyhypko will focus on work in Parliament after winning a seat at October 28 elections.

“The policy of monarchy-zation continues as indicated by the presence of the people loyal to the Yanukovych family of Yanukovych on all key posts in law enforcement and financial positions in the government,” Tymoshenko said. “The family has won over oligarchs.”

Another powerful business and political group, led by Rinat Akhmetov, the wealthiest Ukrainian, has managed to keep influence in the government even as Yanukovych has dismissed Boris Kolesnikov, a key member of the group, from the post of deputy prime minister and transportation and infrastructure minister.

Kolesnikov was dismissed following a PR disaster caused by repeated malfunctions and failures of Hyundai high-speed trains purchased earlier this year ahead of the Euro-2012 soccer tournament in Ukraine.

Kolesnikov was replaced by Volodymyr Kozak, a former head of state railway company UkrZaliznytsia and who is thought to be loyal to both, Yanukovych and Akhmetov.

Oleksandr Lavrynovych, a Yanukovych loyalist, was re-appointed as the Justice Minister, while Yuriy Kolobov, a member of the Family group, was re-appointed as the Finance Minister.

Oleksandr Vilkul, a former governor of the Dnipropetrovsk region and an ally of Akhmetov, was appointed as a deputy prime minister.

Henadiy Temnyk, a former deputy governor of the Dnipropetrovsk region that is closely associated with Vilkul, was appointed the Regional Development and Housing and Utilities Minister.

Olena Lukash, a Yanukovch loyalist, was appointed the minister without portfolio in the Cabinet.

Ihor Prasolov, an Akhmetov ally, was appointed the Economy and Trade Minister.

Natalia Korolevska, the leader of the Forwards Ukraine party that miserably failed at the latest parliamentary elections and whose campaign was thought to have been generously financed by Akhmetov, was appointed the Social Policy Minister.

Pavlo Lebedev, a lawmaker and a Yanukovych loyalist, was appointed as the Defense Minister. Lebedev recently won parliamentary seat at majority district in Sevastopol, so his appointment will trigger a new election in the district next year.

Oleksandr Klimenko, a former head of the State Tax Service and a member of the Family group, was appointed to the newly created position of Revenues and Fees Minister.

Vitaliy Zakharchenko, a member of the Family group, was re-appointed as the Internal Affairs Minister.

Mykhaylo Bolotskykh was appointed as the head of the State Emergency Situations Service, while Dmytro Tabachnyk, loyal to Yanukovych, was re-appointed as the Education Minister.

Raisa Bohatyriova, loyal to Akhmetov, was re-appointed as the Healthcare Minister, but lost a position of deputy prime minister.

Mykola Prysiazhniuk, a Yanukovych loyalist, was re-appointed as the Agriculture Policy and Foodstuffs Minister, according to the presidential administration.

The post of the Culture Minister remains vacant following the dismissal of Mykhaylo Kulyniak. (tl/ez)