The hours on a weekend truce are counting down and there’s no indication that separatists will vacate government buildings.
Prime Minister Arseniy Yatsenyuk’s government suspended anti-terrorist operations in eastern Ukraine and said it was ready to pursue constitutional revisions. A protest leader in Donetsk refused to disarm and vacate seized property until Yatsenyuk’s administration steps down.
I don’t expect any significant risk aversion when markets open but traders will be keeping a close eye on the situation. Ukraine pledged not to use the military on ‘anti-terrorist’ operations and it’s doubtful that police will be able to clear the buildings.
Unless Russia wields some influence on the separatists and convinces them to leave, I think we’re at an impasse.
