Stalemate in Ukraine, Part 2

• Ukraine’s defeated prime minister refuses to accept result of second election

• Observers approve result but Yanukovich to appeal to supreme court

• Tens of thousands of opposition supporters celebrate on streets of Kiev

Key quote

"I will never recognise this defeat because there were violations of the constitution and of human rights in our country" - Victor Yanukovich, defeated prime minister of Ukraine

Story in full UKRAINE’S prime minister Viktor Yanukovich yesterday refused to accept that he had lost the presidential election and promised to challenge the result in the Supreme Court.

Mr Yanukovich’s move threatened to throw the country back into political stalemate just hours after opposition leader Viktor Yushchenko achieved an unassailable lead.

International observers gave their stamp of approval to the result of Sunday’s vote, but Mr Yanukovich said last night he was the rightful winner.

"I will never recognise this defeat because there were violations of the constitution and of human rights in our country," he said.

Mr Yanukovich said he had no confidence in the Supreme Court’s civil chamber, which annulled his victory in last month’s vote. "I will demand that our appeal, which is being prepared, be examined by the entire collegium of the Supreme Court of Ukraine. And that this should be done publicly."

His comments came as Kiev exploded in celebrations with tens of thousands of opposition supporters, in the now familiar orange banners, scarves and ribbons, filling the city centre.

Rock singers entertained crowds in the central Independence Square after voter counts gave Mr Yushchenko an unbeatable lead over his rival.

In what was Europe’s most closely monitored election for a decade, the Organisation for Security and Co-operation in Europe said its observers reported isolated cases of suspected fraud, but nothing on the scale of the systematic ballot rigging in the previous election on 21 November.

That election triggered the so-called Orange Revolution, bringing up to half a million protesters on to the streets of Kiev and seeing the Supreme Court earlier this month declare the previous vote fraudulent, setting in motion the re-run election held on Boxing Day.

"For 14 years we have been independent. Now we have become free," Mr Yushchenko told supporters gathered on Sunday night in Kiev’s Independence Square.

"The people proved their power. They rebelled against probably the most cynical regime in eastern Europe."

With more than 99.8 per cent of votes counted, election officials said Mr Yushchenko had won 52 per cent against Mr Yanukovich’s 44 per cent.

Legal experts are unclear as to whether the challenge by Mr Yanukovich can delay the election confirmation process, though diplomats think that, in the absence of so far undetected violations, the court will find the election is fair in time for Mr Yushchenko’s inauguration on 2 January.

Opposition supporters continued their demonstrations, with thousands of protesters following the well-worn route between Independence Square and the federal presidency building.

"This is a great day, a great day for democracy," said Yuri Druz, offering an orange flag that has been displayed in the back window of his taxi for the past five weeks.

He explained: "I won’t be needing that any more. We are so pleased to have Yushchenko. We want progress. Yanukovich had a criminal past and we can’t have a president with a criminal record."

The outcome suggests Mr Yushchenko, his face disfigured by dioxin poisoning which he blames on a spiked dinner with the security services, will have a big enough margin of victory to carry out a major overhaul of key institutions. Mr Yushchenko has promised to end rampant graft and reform the former Soviet state’s damaged economy.

He wants to align Ukraine with the West, fanning concerns in Russia that it will lose influence over a region where it has held sway for 300 years.

Its western neighbour Poland, traditionally a rival but now a member of the EU which Ukraine aspires to join, was the first country to congratulate Mr Yushchenko. But he has been careful to refer to Russia - which Ukraine relies on for energy - as a strategic partner.

Tackling reform will prove especially hard in the Russian-speaking industrial east, Mr Yanukovich’s stronghold.

Oleksiy Holobutsky, an independent political analyst, said: "Yushchenko must consider that in several regions people consciously do not want the Ukraine Yushchenko wants."

With the election still in dispute, the sprawling Tent City in Kiev remained in place last night with occupants saying they would not drop their guard until Mr Yushchenko is inaugurated and gets the all-important command of the army and interior ministry troops.

"If they make trouble we will keep protesting," said Vsevalot Kohonenko, a 21-year-old student, wearing an orange scarf and orange construction hat and waving Ukraine’s blue and yellow national flag. "This protest changed a lot of things around here, for many years the people of Ukraine were asleep. Now we woke up."

In Independence Square, 14-year-old Volodymyr Bigich wandered about in a brown pantomime horse costume with orange ribbons on his hooves below a Christmas tree the height of a small apartment block, festooned in blue and white lights. Tourists paid to take their picture with him.

"If I was old enough I would vote for Yushchenko," he said. "He will open the country, we will get more tourists, I will get more work."

Lyudmila Prehodko, a 41-year-old housewife, has more reason than most to hope that Mr Yushchenko is installed and Tent City finally disbands - she cleans its toilets. "It’s a messy job," she said, standing outside a line of blue plastic Portaloos with her bucket, orange plastic bib and gloves - also orange. "I volunteered to do this, someone has to do it, I have four young sons and I want a good future for them, and that means Yushchenko. But, you know, I will be glad when Tent City finishes and I can go home."