By Roman Olearchyk in Kiev

Yulia Tymoshenko, the iron-willed Ukrainian politician, inched closer to becoming Kiev's next prime minister after a majority coalition was officially formed yesterday in parliament between her bloc and allies of Viktor Yushchenko, the pro-western president.

This marks an important victory for Ms Tymoshenko, who has struggled to muster support for a razor-thin co-alition backing her as premier. She is expected to support Mr Yushchenko's agenda speedily to integrate Ukraine with the west while using the premiership post as a springboard ahead of presidential elections.

Ms Tymoshenko said a vote on her candidacy and approval of a new parliamentary speaker could happen next week. But with political horse-trading still in high gear, it remained uncertain whether her candidacy would be approved. A handful of presidential supporters in parliament have threatened not to back a Tymoshenko-led co-alition, fearing she will challenge Mr Yushchenko in the 2009 presidential campaign.

"We have to learn to trust each other, as we will have to work together for many years," Ms Tymoshenko said yesterday, while not ruling out a run for the presidency.

If formed, her coalition would be fragile, holding only two seats more than a simple majority in the 450-seat legislature. Also uncertain is whether her government would take over in time to influence the outcome of crucial natural gas price talks with Gazprom, Russia's gas monopoly.
The BYuT bloc led by Ms Tymoshenko, who is popular in Ukraine but loathed in Moscow, mustered a surprising 31 per cent two months ago in snap parliamentary elections.

Elections were held after Mr Yushchenko dissolved parliament this spring to end, in his words, political corruption sponsored by the coalition of Viktor Yanukovich, the outgoing premier. Ahead of the vote, Mr Yushchenko renewed an alliance with Ms Tymoshenko, his erstwhile ally from the Orange Revolution of 2004. The president ousted Ms Tymoshenko's government in 2005 after a bitter falling- out. Both campaigned to oust Mr Yanukovich, whom they also accused of derailing initiatives for integrating Ukraine with the west.