Russia Raises Stakes for Ukraine as Yanukovych Digs In

Ukraines president quashed a demand to unconditionally pardon protesters calling for his resignation, prolonging the countrys political crisis after Russia threatened to withhold aid.

President Viktor Yanukovych angered anti-government activists by pushing through a law last night requiring them to leave seized buildings before scores of their detained comrades can go free. It followed a warning from Russian President Vladimir Putin that his administration may give Ukraine more aid only when it replaced the cabinet of former Prime minister Mykola Azarov, who resigned under this week.

Yanukovych, 63, is facing calls to step down in protests that have spread from the capital to other cities since his rejection of a European Union association pact in November. The demonstrations turned deadly last week and the turmoil has reignited a tug-of-war between Russia and Europe for influence in the nation of 45 million people. The opposition vowed to brave freezing temperatures to stay on the streets.

The law does everything to escalate the situation, Vitali Klitschko, 39, the leader of the opposition UDAR party, said before the vote. The opposition will hold its position and fight on for the release of all detained and arrested activists.

The yield on Ukraines dollar-denominated government debt due 2023 rose by 9 percentage points to 9.675 at 10:58 a.m. in Kiev, data compiled by Bloomberg show. It follows an increase yesterday of 55 basis points, the biggest on a closing basis since Dec. 2. The hryvnia weakened to 8.4787 per dollar from 8.4750 yesterday to its lowest since September 2009.

Yanukovych had threatened to dissolve parliament if lawmakers approved an opposition-proposed amnesty bill with no conditions, Volodymyr Oliynyk, a member of the presidents Regions Party, told Hromadske television. The approved version expires in 15 days if activists do not relinquish control of the government buildings, according to a copy of the law on parliaments website.

At the end of the marathon session that stretched into the freezing night, the law was passed amid applause from government-allied lawmakers and shouts of Shame! Shame! from the opposition. It was backed by 232 deputies, with 11 votes against and 173 abstentions. Yanukovychs Regions party controls the 450-seat assembly with support from the Communists.

The emergency legislative session ended without meeting opposition demands for constitutional amendments to curb presidential powers.

Yanukovych went on his first ever sick leave today with an acute respiratory condition and high fever, his office said in a statement. Opposition leaders maintained a demand for a snap presidential election as the only way to end the crisis.

The opposition says six protesters have died -- three from gunshot wounds -- and a thousand have been injured in protests, while authorities have detained at least 116 on suspicion of taking part. A policeman wounded in a clash on Jan. 27 in southern Ukraine also died, the Interior Ministry said.

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Russia Raises Stakes for Ukraine as Yanukovych Digs In