Ukraine’s parliament adopted a compromise package of electoral and constitutional reforms today that MPs hope will defuse the nation's political crisis and pave the way for a peaceful re-run of its presidential election on December 26.

The reforms will significantly weaken the power of the next Ukrainian president - widely expected to be the opposition leader Viktor Yuschenko - but were seen by his supporters as a necessary compromise to prevent Ukraine being torn apart along its geopolitical and linguistic divide.

The package was approved in a 402-21 vote with 19 abstentions. MPs stood and cheered as Leonid Kuchma, the outgoing President, signed it into law.

"Over the last 100 years, Ukraine has more than once suffered through a crisis, but there was always enough commonsense to find a way out and a decision," Mr Kuchma said.

Under the reforms, some presidential powers, such as appointing government ministers, will be transferred to Ukraine’s parliament as of 2006. However, the president can reject nominees for the top three positions: prime minister, foreign minister and defence minister.

To prevent electoral fraud in the new ballot, restrictions will be placed on absentee voting.

Yushchenko supporters had pushed strongly for the electoral changes, but had resisted the constitutional reforms, fearing they would weaken the presidency.

They had also called for the resignation of Viktor Yanukovych, the Russia-backed Prime Minister who was declared the winner of the November 21 run-off vote which was then annulled by the Supreme Court. But Mr Kuchma refused to fire him and parliament did not address the demand.

The size of the majority in favour of the constituional changes appears to reflect MPs' desire for stability after a damaging political crisis. The measures should weaken the push for autonomy in the Russian-speaking east of Ukraine, where industrial workers are fearful of the free-market reforms Mr Yuschenko is promising.

After signing the text, Mr Kuchma shook hands with the parliament speaker Volodymyr Lytvyn and the deputy speakers. Mr Lytvyn clasped both blue leather folders embossed with a gold trident - a symbol of Ukraine - and held them up to show to deputies.

"We didn’t go beyond the limits and didn’t fall over the precipice," Mr Lytvyn said. "This is an act of consolidation and reconciliation that proves Ukraine is united and indivisible."

As word spread of the decision, pro-Yushchenko demonstrators - exhausted and haggard after two weeks of street protests and blockades in the freezing Ukrainian winter - expressed relief. "Some kind of compromise had to be reached," said Serhiy Vlasov, 44, wearing a pro-Yushchenko orange band around his arm. "We couldn’t drag this out forever."

But Yuliya Tymoshenko, the blonde billionaire who has been at Mr Yuschenko's side throughout the crisis and had been a candidate for prime minister, slammed the compromise as a capitulation. "This is a victory for Kuchma," she said. "This vote helps reduce the powers of a president Yushchenko... We could have won without it."

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