Kiev's New Govt: The Problems Ahead
Updated: 8:41pm UK, Thursday 27 February 2014
By Katie Stallard, in Kiev
Ukraine's new prime minister was given a round of applause in parliament on Thursday afternoon, but there the celebrations stopped.
The new cabinet went straight from the debating chamber into an emergency session to discuss the numerous urgent problems now facing the country.
Russia has ordered 150,000 troops onto combat alert and scrambled fighter jets to patrol the border, armed men are occupying the regional parliament in Crimea, and the economy is in dire straits.
Meanwhile ousted president Viktor Yanukovych has resurfaced in Moscow, insisting he is still the legitimate president of Ukraine and calling a news conference in the Southern Russian City of Rostov-on-Don on Friday.
Arseniy Yatsenyuk, the new Ukrainian prime minister, accused him of driving the country to the brink of collapse and said the "the state treasury has been robbed and is empty".
He claimed $70bn had disappeared from Ukraine's economy into offshore accounts over the last three years, and $37bn worth of credit advanced to the Yanukovych government had disappeared.
The new finance minister said Ukraine needed $35bn over the next two years to avoid bankruptcy.
IMF officials will arrive in the country this week to begin work on a potential aid package.
Around 60 armed men in combat fatigues stormed Crimea's parliament overnight into Thursday and raised the Russian flag over the regional government headquarters.
The parliament elected a new prime minister on Thursday who said they still considered Yanukovych to be the president and awaited his orders.
Russia's Black Sea Fleet is based in the Crimean port of Sevastopol and the autonomous region has a majority Russian population.
Pro-Russian and Muslim Tatar protesters clashed in Simferopol this week over the future of the peninsula, gifted to Ukraine by soviet leader Khrushchev in 1954.
The region will hold a referendum for May 25 to decide whether to remain part of Ukraine.
Prime Minister Yatsenyuk appealed to the country to "stay united for our children" - promising to protect the rights of all citizens, whether from east or west, Russian-speaking or Ukrainian.
Some Russian news outlets had claimed the new government would ban the Russian language.
Mr Yatsenyuk was given a standing ovation as he promised Ukraine would join the EU.
He added: "Together we will win."
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.
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