Baghdad, Iraq ? Ukraine withdrew 150 servicemen from Iraq on Saturday, beginning a gradual pullout, as Shiite and Kurdish politicians refined plans to form a coalition government that officials said includes an agreement not to turn the country into an Islamic state.

In Mosul, gunmen killed three policemen and wounded a fourth at a funeral procession, the second time in as many days that mourners have been targeted in that northern city.

It was unclear if the mourners were Shiites, but the police officers were participating in a procession for a colleague’s wife and two children who died in a roadside bomb attack a day earlier, policeman Ammar Hussein said.

Insurgents led by Sunni Arabs, a minority that was dominant under Saddam Hussein, are targeting Shiite funeral processions and ceremonies in an apparent campaign to spark a sectarian war.

On Friday, relatives gathered in small groups to bury 50 people killed a day earlier by a suicide bomber in Mosul. A mass funeral procession was canceled for fear of another attack.

The Ukrainian company that was based near Suwayrah, 25 miles south of Baghdad, left Iraq and was expected to return home by Tuesday, the Ukrainian Defense Ministry said.

Earlier this month, President Viktor Yushchenko and top defense officials ordered a phased withdrawal of Ukraine’s 1,650-strong contingent from the U.S.-led coalition in Iraq. Ukraine has lost 17 soldiers in Iraq and the deployment is deeply unpopular among people in the former Soviet republic.

The U.S. military also said a U.S. soldier was killed Friday during operations west of the Iraqi capital in the volatile Anbar province “in a non-hostile accident.” The military said it was investigating the death but gave no other details.

In political developments, the country’s main Shiite and Kurdish coalitions were putting the finishing touches on an agreement they hope to sign on Monday forming a coalition government. Any U.S. exit strategy hinges on having a new government organize Iraq’s army and police to take over responsibility for security.

A private security guard paid for by the Shiite community, right, guards the second day of a funeral for three members of the same household who were killed in Thursday's suicide bomb attack on a funeral. Saturday's attack in the courtyard of a Shiite mosque killed 50 and wounded more than 100, in the northern town of Mosul, Iraq.

The Kurds have agreed that conservative Islamic Dawa party leader Ibrahim al-Jaafari will be Iraq’s prime minister.

“There is discussion and there is an agreement on the basic principles. But there is not final agreement on all the details. This visit was on invitation by Talabani to Chalabi. The atmosphere was positive,” said alliance member Ali al-Faisal.

Kurds and alliance officials said both sides agreed that Iraq would not become an Islamic state, a desire also expressed by the country’s most powerful Shiite cleric — Grand Ayatollah Ali al-Sistani.

Massoud Barzani, leader of the Kurdish Democratic Party, said the Kurds would oppose any attempt to turn Iraq into an Islamic state.

“I think the Shiites well understand that implementing an Islamic government … will bring a lot of problems,” Barzani told Dubai’s Al-Arabiya television. “We have an alliance with the Shiites. We were both oppressed, and we both struggled against the old regime, but if they insist on having a religious government we will oppose to them.”

An alliance member, Ali al-Dabagh, said there were no plans to turn Iraq into a religious state or a secular one.

“We neither want to establish a religious nor a secular state in Iraq, we want a state that respects the identity of the Iraqi people and the identities of others” al-Dabagh said.