Ukraine's PM Tymoshenko back to business as usual

Ms Tymoshenko has not spoken publicly since the poll

Ukrainian PM and presidential hopeful Yulia Tymoshenko has held a cabinet meeting, defying calls by victorious rival Viktor Yanukovych to stand down.

It was her first public act since Sunday's poll. Her camp says it will challenge the result, and wants a recount of votes in certain areas.

Mr Yanukovych has called on his rival to abandon her protests and resign.

International observers gave the election a clean bill of health, saying Mr Yanukovych won by a margin of 3.48%.

Mrs Tymoshenko has not issued a statement on the vote's outcome since Sunday night, leaving confusion over her position.

Having chaired Thursday's cabinet meeting, she made no mention of the election result, but rather criticised her rival for retreating on election promises to raise social welfare standards.

Ukraine has been in political deadlock for several years, undermining its ability to deal with a severe economic crisis. Analysts say a challenge by Mrs Tymoshenko would prolong the instability.

Mr Yanukovych has said he wants to form a new coalition, and may call snap parliamentary elections since, with Mrs Tymoshenko still heading the government, stalemate is likely to continue.

Pressure to concede

Some aides of Mrs Tymoshenko have suggested she will keep fighting.

On Thursday, Reuters news agency quoted first deputy Prime Minister Oleksander Turchynov saying: "The government does not plan to resign voluntarily."

Supporters of Yanukovych have been holding rallies in Kiev

The message came in response to a statement posted on the website of Mr Yanukovych's Party of the Regions in which he called on his rival to resign and go into opposition.

"I want to remind Mrs Tymoshenko that the basis of democracy is the will of the people. Democratic leaders always accept the results of the elections," said Mr Yanukovych. "The country does not need a new crisis."

Mrs Tymoshenko is under heavy pressure to accept the result. The EU and US have endorsed the conduct of the election, and Russia has congratulated Mr Yanukovych on his success.

International observers said the election was transparent, unbiased and an "impressive display" of democracy.

Observers from the Organisation for Security and Co-operation in Europe (OSCE) were unusually blunt, warning the country's political leaders they should listen to the people's verdict and make sure the transition of power was peaceful.

Releasing their final vote tally on Wednesday, the Central Elections Commission said Mr Yanukovych had garnered 48.95% of the ballots to Mrs Tymoshenko's 45.47%.

Some 4% voted against both candidates, while 1.2% of the ballots were spoiled. Voter turnout was about 69%.

Mrs Tymoshenko's camp has demanded a recount in more than 900 polling stations. The Central Electoral Commission said a recount was under way in some - but not as many as Mrs Tymoshenko wanted.

Mr Yanukovych was pronounced the victor of the 2004 election, only for the result to be over-ruled because of vote-rigging, following the Orange Revolution which was led by defeated President Viktor Yushchenko and Mrs Tymoshenko.