KIEV, Oct. 13 – Viktor Yanukovych, the leader of the opposition Regions Party, Parliament’s largest group, Tuesday called for immediate creation of a new government coalition to prevent economic collapse before the next presidential election in January 2010.

The comment is a shift in Yanukovych’s position as he had earlier suggested that Prime Minister Yulia Tymoshenko must be given a chance to run the economy through the election.

“There will be a tragedy unless Parliament consolidates now,” Yanukovych said in comments made in an interview with a Chernivtsi television station. “We will raise this issue next week for the sake of overcoming the crisis.”

Ukraine’s economy contracted 20.3% on the year in the first quarter and 18% on the year in the second quarter, some of the worst economic indicators in the world, as the country suffers from weakening demand for steel, its main export commodity.

Ukraine is dependent on a $16.4 billion loan from the International Monetary Fund to survive the crisis, but speculations are high the IMF may postpone the next $3.1 billion installment in November due to the lack of reforms.

The Regions Party controls 175 seats in the 450-seat Parliament and is the largest group since the general election that had taken place late 2007.

The group led by Tymoshenko controls 156 seats, but the current coalition controls about 213 seats, which is short of the 226 votes that are needed for approval of legislation.

This leads to delays with approval of key legislation and poses a problem for the government for approval of the 2010 budget that must be approved before December 31 to make sure the financing continues in January 2010.

The failure to implement reforms, such as the government’s refusal to hike natural gas prices for households, may postpone the lending from the IMF and that will pose a major economic threat.

“God forbid the economy to worsen further during the next four months,” Yanukovych said.

The Tymoshenko-led coalition was created late 2007 and includes three groups, the Tymoshenko Bloc, the 20-strong group led by Parliamentary Speaker Volodymyr Lytvyn and by a half of the 72-strong Our Ukraine-People’s Self-defense group.

The other half of Our Ukraine-People’s Self-defense group is controlled by President Viktor Yushchenko, who has earlier refused to accept Tymoshenko’s economic policy.

The only other group in Parliament is the Communist Party, which controls 27 seats.

The Communist Party declares itself as an opposition group, but its lawmakers have come to the rescue of Tymoshenko repeatedly over the past two years in exchange for receiving senior positions in several ministries.

Lytvyn, asked about to comment on Yanukovych’s calls for the new coalition, said the action must be backed by at least 226 lawmakers to materialize.

“Submit a decision of groups that include a total of 226 lawmakers and I will immediately declare the creation of the new coalition and the end of the previous one,” Lytvyn said in an interview with Channel 5 television late Tuesday.

“If you don’t like this option, please submit 226 signatures no matter whether you have decision of groups and I will also go for pronouncing the creation of the coalition,” Lytvyn said. (tl/ez)