Ukraine delays government formation despite EU pleas for quick action

The  interim authorities in Ukraine have deferred the formation of a new government despite pleas from the European Union to quickly pave the way for an emergency aid package and the Russian denunciations of the make-shift government that it said was illegitimate.

Russia on Monday questioned the legitimacy of Ukraine's interim leadership and charged it of using a peace deal brokered by Europe to make a power grab and to suppress dissent in Russian-speaking regions through ''terrorist methods.''

Russia's warnings have stoked fears that Moscow is encouraging a breakup of Ukraine, but such a drastic move seems distant.

''If you consider Kalashnikov-toting people in black masks who are roaming Kiev to be a government, then it will be hard for us to work with that government,'' Russian prime minister Dmitry Medvedev said on Monday.

Activists on capital Kiev's Independence Square, meanwhile, expressed dissatisfaction with the faces in the make-shift parliament following the ouster of President Viktor Yanukovych.

Protestors gathered at the maidan on Tuesday morning said they would continue until it was clear that all the ''bandits'' would be removed from power.

The formation of a new government is key to EU aid to Ukraine to help the country continue to meet its financial obligations and to borrow money.

Catherine Ashton, the European Union's top foreign policy official, was in Kiev meeting with the interim leaders asking for a plan. She said Ukraine needs to move fast to put an economic reform proposal together in order to prepare the way for emergency financial aid.

Ukraine's economy is in really bad shape, and the new authorities say they have found the government's coffers almost bare.

Russia had promised Yanukovych a $15 billion bailout, but that won't be coming now as Russian leaders have made clear their distrust and dislike of Ukraine's new interim authorities.