Tensions high in close-run Ukraine election

[Ukraine election]

* Close result seen in presidential run-off

* Observers see opposition's Yanukovich in front

* PM Tymoshenko threatening street protests

UKRAINE: Ukrainian voters choose between Prime Minister Yulia Tymoshenko and opposition leader Viktor Yanukovich in a close presidential run-off on Sunday that could yet disappoint hopes of a swift return to stability.

Many commentators predict a narrow victory by opposition leader Yanukovich, but fiery Prime Minister Tymoshenko is threatening to summon protesters in a replay of the 2004 “Orange Revolution” if she deems the second-round election unfair.

A decisive outcome should reset Ukraine’s relations with former imperial master Russia, which plummeted under pro-Western President Viktor Yushchenko, and decide the speed of Ukraine’s path into the European mainstream.

Challenges to the result would further hurt investor confidence in the crisis-hit economy and delay talks with the International Monetary Fund on a $16.4 billion bail-out programme derailed by breached promises of fiscal restraint.

The euphoria of 2004, when protests overturned rigged results that gave Yanukovich victory, has evaporated after five years of falling living standards and paralysing political squabbles between President and Prime Minister.

Kiev, Sunday, Reuters