
The current shootout revolves around a battle over life and death for the presidency. Since last year, Yanukovych has won over an increasing number of parliament deputies to the point where he threatened to blow Yushchenko's position to smithereens. Yanukovych was quickly approaching the 300 out of 450 votes in parliament - Verkhovna Rada - necessary to change the constitution and override presidential vetoes. This might also have included abolishing the very office of the president.
Yushchenko's move now forces Yanukovych to take the fight to the high-street, instead of the back alleys where he until now has battled for parliamentary votes. The showdown has been underway since Saturday, when nearly 100,000 people demonstrated in central Kiev in support of the two combattants. As usual in Kiev, the orange forces took centre stage, gathering some 70,000 demonstrators calling for dissolving parliament and new parliamentary elections. Nearby, about 20,000 of Yanukovych's followers met in support of the current government. The stage was thus set for the country's biggest political duel since the 2004 Orange revolution.

Crisis has become the hallmark of Ukrainian politics since last year's March parliamentary elections. Even though Yanukovych and his Party of Regions stood as the clear election victors, the Orange forces of Our Ukraine and the Timoshenko Bloc did their utmost to form a coalition government barring Yanukovych from power. After months of negotiations and under the threat of new elections, the Orange coalition was proclaimed dead and Yanukovych became Prime Minister. Ever since, President Yushchenko has fought a losing battle to balance an increasingly powerful Yanukovych government.
The question now is who will form the biggest posse for power in the upcoming 27 May fight between orange and blue forces in Ukraine. Yanukovych's power base is solid, with massive financial backing from several mighty oligarchs. In contrast, Yushchenko is badly armed for elections, with a party deemed to become the first victim of this political duel. In essence, Yulia Timoshenko will stand the most to gain from an election campaign, establishing her role as the undisputed leader of the orange forces and the only real alternative to Yanukovych.
For Yushchenko, the choice was between being removed as president

Update: In response to Yushchenko's decree for parliamentary elections, Yanukovych's supporters have now called for presidential instead of parliamentary elections. They refer to Yushchenko's decision as an attempted coup d'état and have declared that parliament will not grant the financial means necessary to go through with parliamentary elections. It is not unlikely that Yushchenko's decision to dissolve parliament will serve Yanukovych's interests in winning over the remaining votes necessary to gain the qualified 300 out of 450 qualified majority to make constitutional changes and eventually depose the president. A parliament dissolved by the president would thus decide to remove Yushchenko from his office or abolish the presidency as a whole. The complications this would cause are immense, and it is diffcult to foresee what further ramifications it would involve. Furthermore, the conflict has been referred to the Constitutional Court, consisting of 18 members: 6 presidential representatives, 6 parliamentary, and 6 judicial. What will happen if the Court does not reach a decision within the stipulated five days is hard to determine at this point. It is also said that the Election Commission, which was so hated during the Orange revolution, will be reconvened.