Ukraine’s Premier Loses Power Struggle, Resigns : Politics: The reformer had sought an extension of special powers. But the Parliament and the president balked.

Prime Minister Leonid Kuchma resigned Thursday after a battle for power that pitted him against both the country’s Parliament and its president.

The resignation, not yet formally accepted by lawmakers, came on the second day of heated debate in the Parliament, called the Supreme Rada, over whether to grant Kuchma a yearlong extension of his special powers to run the economy by decree.

After several parliamentary groups roundly criticized him, Kuchma, a former boss of the world’s largest missile factory, quit when President Leonid Kravchuk proposed to assume full executive powers himself.

In his resignation speech, Kuchma declared: “To run the country, you need to have a mandate, finances and capable officials. We do not have these, and I have therefore asked President Kravchuk, as the popularly elected leader, to take on responsibility for the government.”

Kuchma had headed Ukraine’s government since October and had tried to hurry the pace of economic reform in this second-most-powerful republic of the former Soviet Union.

Kuchma’s resignation comes at a critical time. At stake was his seven-point reform program, promising such measures as a selloff of state property and rigid control of government credit.

While Kuchma has enjoyed some success, especially in curbing an inflation rate that had reached 45% a month, he made little headway in other areas, including privatization. His resignation raised this question: Will Ukraine’s new government continue to make any reform effort at all?

President Kravchuk’s desire to stay popular, along with his natural conservatism as a former top Communist and his lack of interest in economic issues, is likely to act as a brake on Ukrainian reform if he takes over its management.

An International Monetary Fund delegation arrived in Kiev this week to finalize negotiations that the government hopes will yield a $750-million loan. If Kuchma’s resignation is accepted by the Parliament, as seemed likely Thursday, the expected agreement may be in jeopardy.

In a tough speech to the Parliament, Kuchma had threatened to quit unless deputies not only extended his decree-making powers but also added to them by letting the Cabinet control the National Bank, the state privatization fund and its anti-monopoly commission.

If he had won all of his extra demands, Kuchma, respected for his honesty and intelligence, would have enjoyed the powers of a virtual dictator.

Faced with the prime minister’s demands, the Parliament and Kravchuk both balked at giving up their authority.

Instead, Kravchuk suggested a review of executive power and creation of the post of vice president to aid him in taking the reins of government.

A document was later circulated in the Parliament, proposing elimination of the post of prime minister and giving the president a full mandate to run the government.

The debate is expected to continue today. Although the situation is fluid, Kravchuk is expected to win lawmakers’ support to take over the government.