Political Manoeuvring Risks Further Ructions

Moves by allies of Ukrainian President Viktor Yanukovich to win back power for the presidency from parliament through the Constitutional Court could see a deterioration in Ukraine's political risk profile. While a greater concentration of power could improve policy formation, we caution that this would likely presage significant social and political protests against Yanukovich. Should this play out, we believe that it would hurt still brittle investor confidence in Ukraine.

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