Dec. 3 (Bloomberg) -- Ukraine's Supreme Court threw out the results of last month's presidential election that showed Prime Minister Viktor Yanukovych beat Viktor Yushchenko, and called for a new runoff to be held no later than Dec. 26.

The court ruled the original election was riddled with fraud after hearing evidence for almost five days. Presiding Judge Anatoliy Yarema said a new vote must be held within three weeks from Dec. 5.

Hundreds of thousands of Yushchenko supporters have staged protests for the past 12 days, demanding that the Nov. 21 runoff vote be held again. News of the decision was greeted with a fireworks display on Kiev's Independence Square, the center of the protests.

At his regular evening appearance on the square, Yushchenko praised the protesters' ``spirit and elegant behavior'' in a movement that has taken place peacefully. Yushchenko promised the protesters, many of whom have camped in tents in often freezing temperatures, that they would all receive a certificate to prove that they had turned out to defend democracy. He thanked police and the military for staying neutral.

Yushchenko said the demonstrations should continue until outgoing President Leonid Kuchma accepts a series of parliamentary resolutions, including its demand in a no- confidence vote on Dec. 1 for the resignation of Yanukovych as prime minister and, earlier, for the replacement of the Central Electoral Committee.

`Huge Victory'

``I believe that this is a huge victory, first of all a victory of the law,'' said Mykola Katerynchuk, a lawmaker and Yushchenko's representative in the court, in an interview on television station 1+1 after the decision was announced. ``This is a victory of democracy.''

The Supreme Court ruled the law had been violated while voting lists were completed and that one candidate had dominated the media. Absentee ballots were also tampered with, and the electoral committee didn't investigate all claims of fraud before pronouncing Yanukovych the winner, the court said.

In Washington, the Bush administration praised the ruling. ``The court's decision is an important step in moving toward a peaceful, democratic resolution that reflects the will of the people,'' White House spokesman Scott McClellan told reporters.

Milestone Cited

Russian opposition politician Grigory Yavlinsky said the decision was a milestone. ``For the first time in the territory of the former USSR, the top judicial proceeding has said `no' to falsification, the use of incumbency leverage and abuse of the people's will,'' he told the Russian news agency Interfax.

The Russian government has backed Yanukovych. President Vladimir Putin was among the first to congratulate him on his declared victory after the Nov. 21 vote.

European Union mediators, Kuchma and the two candidates have met twice during the past week to resolve the dispute, keep the country from splitting up and avoid bloodshed in the former Soviet republic of 47 million people. Kuchma offered fresh general elections, a move that Yushchenko rejected. By law, they would have taken three months to organize.

Kuchma Proposal

``Kuchma and Yanukovych wanted a completely new election, but we have categorically said that if this subject is discussed ever again, we don't see any reason to continue such talks,'' Yushchenko said earlier. ``The only logical decision is a revote.''

Polish President Aleksander Kwasniewski, European Union envoy Javier Solana, Lithuanian President Valdas Adamkus and Boris Gryzlov, the speaker of the Russian Duma, who took part in the last round table on Dec. 1, said they would return after the court decision to continue negotiations. Kwasniewski said in Warsaw that he expects to return to Kiev tomorrow.

``The Supreme Court decision nullifying the runoff gives renewed hope that a new vote will be fair and happen quickly. Investors think that means the pro-European vote will win out, and sooner rather than later,'' said Laurence Watts, an analyst at Barclays Capital in London.

Ukraine's benchmark 7.65 percent bond maturing in 2013 extended gains, advancing 0.4 cents on the dollar to 102.15, lifting the yield 6.3 basis points to 7.306 percent.

To contact the reporters on this story: Halia Pavliva in Kiev at hpavliva@bloomberg.net. Julian Nundy in Kiev at jnundy@bloomberg.net

Last Updated: December 3, 2004 14:54 EST