Israel foreign minister Lieberman resigns

JERUSALEM -- Israel's powerful foreign minister announced his resignation from government yesterday, a day after an indictment for breach of trust was filed against him by the country's attorney general.

Avigdor Lieberman's move shakes up Israel's election campaign and may impact Prime Minister Benjamin Netanyahu's political calculations barely a month before the vote.

Lieberman continued to maintain his innocence in a statement and indicated that he could return to politics in time for Jan. 22 national elections if he was cleared or could reach a plea bargain. Lieberman was charged Thursday with breach of trust in a fraud and money-laundering case threatening to upend the Israeli political system.

The Soviet-born Lieberman is founder and head of Yisrael Beitenu, an ultranationalist party especially popular with immigrants from the former Soviet Union. With a tough-talking message that has questioned the loyalty of the Jewish state's Arab minority, sharply criticized the Palestinians and confronted foreign critics, he has at times alienated Israel's allies while becoming an influential voice in Israeli politics.

Yisrael Beitenu and Netanyahu's Likud Party recently joined forces and are running together on a joint list in the parliamentary elections. Opinion polls have predicted the list would be by far the largest bloc in parliament and lead a new coalition government.

Netanyahu is heavily favored to win the premiership, but Lieberman's departure will have a major impact on negotiations to build a governing coalition. Lieberman spokesman Tzachi Moshe said the minister is not resigning from the party list, meaning he is still running for parliament. -- AP