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* Armed men seize buildings in Crimea, run up Russian flag

* Acting president warns Moscow against Crimea troop moves

* Russia fighters on alert, says it will defend compatriots’

rights

* Hryvnia falls to record low, IMF mission to visit Kiev

* Yanukovich said to hold news conference on Friday

By Alessandra Prentice and Alissa de Carbonnel

SIMFEROPOL, Ukraine, Feb 27 (Reuters) – Armed men seized the

parliament in Ukraine’s Crimea region on Thursday and raised the

Russian flag, alarming Kiev’s new rulers, who warned Moscow not

to move troops beyond the confines of its navy base on the

peninsula.

Crimea, the only Ukrainian region with an ethnic Russian

majority, is the last big bastion of opposition to the new

leadership in Kiev since President Viktor Yanukovich was ousted

at the weekend and provides a base for Russia’s Black Sea fleet.

Its regional parliament, meeting in another part of the

building that was apparently still occupied by the gunmen, voted

to stage a referendum on “sovereignty” for Crimea.

“I am appealing to the military leadership of the Russian

Black Sea fleet,” said Oleksander Turchinov, Ukraine’s acting

president, who warned Russia not to move personnel beyond areas

permitted by treaty for those using its naval base.

“Any military movements, the more so if they are with

weapons, beyond the boundaries of this territory will be seen by

us as military aggression,” he said.

Russia has repeatedly declared it will defend the interests

of its citizens in Ukraine, and on Wednesday announced war games

near the border involving 150,000 troops on high alert.

Although Moscow says it will not intervene by force, its

rhetoric since the removal of its ally Yanukovich has echoed the

runup to its invasion of Georgia in 2008, when it sent its

troops to protect two self-declared independent regions and then

recognised them as independent states.

Ukraine’s leaders say they fear separatism in the Crimea.

In Washington, the White House warned Russia to avoid

“provocative” acts. “We strongly support Ukraine’s territorial

integrity and sovereignty. We expect other nations to do the

same,” said White House spokesman Jay Carney.

Secretary of State John Kerry spoke to Russian Foreign

Minister Sergei Lavrov and urged Moscow to work with the United

States and its European allies to help stabilise Ukraine.

“We believe that everybody now needs to take a step back and

avoid any kind of provocations,” Kerry said at a joint news

conference with German Foreign Minister Frank-Walter Steinmeier.

Ukraine’s Foreign Ministry summoned Russia’s acting

ambassador in Kiev for consultations.

The face-off between Moscow and the West has revived

memories of the Cold War. Ukraine has been in crisis since

November, when Yanukovich abandoned a proposed trade pact with

the EU and turned instead towards Russia. It escalated last week

when scores of demonstrators were killed, many by police

sharpshooters on rooftops, and Yanukovich was toppled.

The fresh turmoil in Crimea sent the Ukrainian hryvnia

tumbling to a new record low of 11 to the dollar on the

Reuters dealing platform. Ukraine’s new central bank

governor has abandoned a policy of propping up the currency

which was rapidly draining its foreign reserves.

Yanukovich’s overthrow will undoubtedly cost Kiev a $15

billion Russian bailout offered to Yanukovich as a prize by

Moscow for spurning the EU trade pact. Ukraine urgently needs

other sources of funding to stave off bankruptcy. The

International Monetary Fund said it would send a team to Kiev in

the coming days.

New finance minister Oleksander Shlapak said he hoped the

IMF would work on an aid package of at least $15 billion.

Ukraine says it needs $35 billion over the next two years.

The minister also said he expected the hryvnia to strengthen

soon at around 10 to the dollar.

GUNMEN

No one was hurt when government buildings were seized in

Crimea’s regional capital Simferopol in the early hours by

Russian-speaking gunmen in uniforms without insignia.

“We were building barricades in the night to protect

parliament. Then this young Russian guy came up with a pistol

… we all lay down, some more ran up, there was some shooting

and around 50 went in through the window,” Leonid Khazanov, an

ethnic Russian, told Reuters.

“I asked them what they wanted, and they said ‘To make our

own decisions, not to have Kiev telling us what to do’.”

Acting interior minister Arsen Avakov said the attackers had

automatic weapons and machine guns.

The regional prime minister said he had spoken to the people

inside the building by telephone, but they had not made any

demands or said why they were there. They had promised to call

him back but had not done so, he said.

With the occupation apparently still under way, the regional

parliament met in another part of the building and voted to hold

referendum on May 25, the day Ukraine plans to elect a new

president to replace Yanukovich. The referendum, if passed,

would declare Crimea sovereign, with its relationship to the

rest of Ukraine governed by treaty.

About 100 police gathered in front of the parliament, and a

similar number of people carrying Russian flags later marched up

to the building chanting “Russia, Russia” and holding a sign

calling for a referendum on Crimea’s status.

About 50 pro-Russia supporters from Sevastopol, where part

of Russia’s Black Sea navy is based, lined up

shoulder-to-shoulder facing police. Gennady Basov, their leader,

said: “We need to organise ourselves like this to maintain order

while this illegal and unconstitutional government operates in

Kiev.”

The crowd cheered at news that parliament had voted for the

referendum.

However, elsewhere there was some anger at the invasion of

the regional parliament and the flying of the Russian flag.

Alexander Vostruyev, 60, in a leather cap and white beard,

said: “It’s disgrace that the flag if a foreign country is

flying on our parliament … It’s like a man coming home to find

his wife in bed with another man.”

By nightfall, the Russian flag still flew over the building,

although crowd in front began to dwindle.

WESTERN CONCERN

The fear of military escalation prompted expressions of

concern from the West, with NATO urging Russia not to do

anything that would “escalate tension”, although the alliance

said neither it nor the United States had drawn up plans for how

they would respond if Russia did intervene militarily.

Polish Foreign Minister Radoslaw Sikorski called the seizure

of government buildings in Crimea a “very dangerous game”.

Russia has a history of using its military power to protect

allies who declare self rule in parts of other ex-Soviet states,

notably in Georgia and also tiny Moldova. Members of Crimea’s

Russian majority have periodically agitated for independence at

times of tension between Kiev and Moscow.

Still, any move by Moscow to assist Crimeans in breaking

away from Ukraine – a nation of 46 million people on the

ramparts of central Europe – would be a more direct challenge to

the West than any Russian act since the Cold War.

Germany would do everything to support the new Ukrainian

government, Chancellor Angela Merkel said in London after talks

with British Prime Minister David Cameron, who said Russia must

respect Ukraine’s territorial integrity.

Ukraine’s new rulers pressed ahead with efforts to restore

stability to the divided country, approving formation of a

national coalition government with former economy minister

Arseny Yatseniuk as its proposed head.

Yatseniuk told parliament that Yanukovich had driven the

country to the brink of collapse. He accused the deposed

president of stripping state coffers bare and said $70 billion

had disappeared into offshore accounts.

“The state treasury has been robbed and is empty,” he said.

Yanukovich issued a statement on Thursday declaring he was

still president of Ukraine and warning its “illegitimate” rulers

that people in the southeastern and southern regions would never

accept mob rule.

Russian news agencies said he planned to hold a news

conference on Friday (1300 GMT) in the southern Russian city of

Rostov-on-Don.