KIEV, April 10 ??“ President Viktor Yushchenko??™s Our Ukraine party and Former Prime Minister Yulia Tymoshenko made several important concessions on Monday that may eventually open way for them to create a government coalition.

Tymoshenko agreed to drop her demand to immediately sign a memorandum that would automatically secure her the post of the prime minister in the future government.

Tymoshenko also agreed to work out a coalition agreement, suggested by Our Ukraine, to outline key policy issues that will be tackled by the future government. She also pledged not to challenge Yushchenko at presidential election in 2009 if the coalition between the Tymoshenko group and Our Ukraine is formed.

Our Ukraine, on its part, agreed to incorporate into the coalition agreement a clause that would still allow Tymoshenko to get the post of the prime minister.

???We have a draft agreement that we will use as the basis,??? Tymoshenko said at a press conference Monday after talks with Our Ukraine and the Socialist Party. ???Doesn??™t matter who wrote it, what??™s important is that we have taken this draft to work with.???

The development is an important breakthrough in talks between parties that have helped Yushchenko to win the presidency at the dramatic presidential election in December 2004.

Tymoshenko has last week threatened to quit the talks and go in opposition to Yushchenko in reaction to Our Ukraine??™s reluctance to immediately support her as the next prime minister.

Prime Minister Yuriy Yekhanurov, one of Our Ukraine leaders, rejected the pressure on Friday and suggested the party may seek talks with the Regions Party, a moderate opposition group, to create the coalition.

The Tymoshenko group, Our Ukraine and the Socialist Party will probably control 243 seats in 450-seat Parliament following the March 26 election. The Regions Party, which is expected to have 186 lawmakers, would be left in the opposition if the three groups successfully conclude their coalition talks.

???We have taken a firm decision, which has been declared by the three groups, that the coalition will consist of Our Ukraine, the Socialist Party and the bloc that I lead,??? Tymoshenko said. ???No other groups will join the coalition.???

Our Ukraine, the Tymoshenko group and the Socialist Party are expected to hold the next meeting on Thursday after the draft agreement is discussed and possibly amended by each of the groups.

Roman Bezsmertniy, who had been handling talks with Tymoshenko on behalf of Our Ukraine, was encouraged by the breakthrough.

???We believe that the path that we have started is right,??? Bezsmertniy said. ???So far we don??™t see any dangers.???

Yushchenko is thought to have been lukewarm on nominating Tymoshenko as the next prime minister amid concerns that her heavily populist policy last year has hurt Ukraine??™s investment climate and slowed down economic growth.

That??™s why Our Ukraine has been insisting on signing the coalition agreement that would outline key policy issues and a timeframe for their implementation. This would make sure that whoever is eventually approved as the prime minister would be forced to stick to the reforms stipulated in the agreement, analysts said.

But another condition that has been recently outlined by Our Ukraine was that the future prime minister should not challenge Yushchenko at the presidential election in 2009.

This is especially important after Tymoshenko??™s party has performed strongly at the March 26 election beating Yushchenko??™s Our Ukraine party into the third place.

But this obstacle may finally be removed.

???I told the president that I am ready to support him at the presidential election in 2009 if we create a joint team today,??? Tymoshenko said in an interview with Tygodnik Powczechny, a Polish newspaper. ???I can make this statement publicly and in writing.??? (tl/ez)