Power slips from Ukraine's Tymoshenko

Yulia Tymoshenko, Ukraine's prime minister, has failed to secure a majority in the country's 450-strong parliament.

This moves her newly-elected rival, president Viktor Yanukovych, a step closer to removing her from office. Yanukovych, who beat Tymoshenko in February 7 elections, is trying to consolidate his position. The country has suffered from a lack of strong government and last year saw its economy shrink by 15%.

The chemical sector there must live in hope that Ukraine's political paralysis will soon pass so that the govenment can get on with the task of kick-starting the economy there. Cuts to gas supplies last winter affected chemical production as feedstocks were cut.

Ukraine has huge potential for chemical demand growth. It has a large population for the region at 46m and a nascent middle class. Per capita GDP reached $7,342 in 2008, according to Wikipedia.

Image credit Wikipedia