President Viktor Yushchenko finally approved the nomination of Viktor Yanukovych, his 2004 presidential rival, as prime minister Thursday, and the Supreme Rada, parliament, voted in his favor Friday, thereby ending a four-month political crisis in the former Soviet republic.
Yanukovych, the leader of the pro-Russia Party of Regions, the largest in the Rada, formed the Cabinet Saturday. The emergence of a grand coalition, comprising the Party of Regions, pro-presidential Our Ukraine bloc, the Socialists and Communists, will be formally announced in September.
The Kremlin press office said "the heads of state discussed priority areas of Russian-Ukrainian relations in the short term."
Later in the day, Putin congratulated Yanukovych on the nomination.
In late 2004, the Russian leader hurried to congratulate Yanukovych on the victory in the presidential elections, fueling accusations against Russia of meddling in Ukrainian affairs by backing a candidate. The elections results, however, were reviewed in the wake of mass protests against alleged vote rigging, and the presidency went to Yushchenko.
"Both parties expressed an intention to start a detailed discussion of urgent issues in bilateral relations as soon as possible," the Kremlin said Monday.
Relations between the former Soviet neighbors have deteriorated in recent years as the West-leaning government that came to power on the heels of the protests known as the "orange revolution" seeks to join the European Union and in the longer run NATO.
The latter objective has particularly displeased Russia, anxious about the approach of NATO bases closer to its borders.
The new government will also have to tackle a gas problem with Russia, which raised prices in late 2005 and plans to increase them further to European levels.
The move led to a bitter row between the two countries in early 2006, with Ukraine calling it blackmail and Russia accusing Ukraine of tapping its gas in transit to European markets.
