No sign of tensions calming on the streets of Kiev, in fact today we could have a new flashpoint.
Prime Minister Mykola Azarov’s cabinet is holding its weekly meeting in the government building which protesters have blockaded since Monday, paving the way for a possible showdown.
Popular pressure, following President Viktor Yanukovich’s decision to reject an EU trade deal and turn back to Russia, is being matched by the markets, and it is from there that the potential tipping point could come.
The cost of insuring Ukrainian debt against default has been driven up to a level not seen since January 2010. Ukraine faces gas bills and debt repayments next year of more than $17 billion. Investors fear that the country could run out of cash to repay maturing debt and central bank calls on depositors to avoid a bank run suggests it fears just that.
Yanukovich is in China but Beijing tends to be longer on promises of help than hard cash in these situations. That leaves Moscow since it’s virtually impossible to imagine Kiev acceding to the sort of conditions the IMF would demand in return for help, with elections looming in 2015.