Ukraine’s interim President Olexander Turchynov fell out spectacularly with his erstwhile allies in the neofascist Right Sector yesterday, proclaiming that the group was "bent on destabilisation."

Right Sector activists had blockaded parliament on Thursday night, smashing windows and chanting anti-government slogans.

They blamed the Interior Ministry for the killing of Right Sector leader Oleksandr Muzychko, better known as Sashko Bily, who died on Monday night in a shoot-out with police.

Right Sector thugs played a prominent role in the Kiev protests and clashes with police which led to the illegal removal of President Viktor Yanukovych from power.

While the rightwingers were surrounding the building, it took two readings of an austerity Bill for the government to force through measures outlined in punitive austerity legislation demanded by potential IMF lenders.

This was despite Prime Minister Arseny Yatsenyuk telling the parliament that it had "no other choice but to accept the IMF offer," as the country's fiscal gap in 2014 is projected at £15.6 billion.

The law introduces a basic rate of corporation tax at 18 per cent and VAT at 20 per cent.

It also threatens a 50 per cent cut in the average monthly pension of £96 for anyone still working.

Taxes on alcohol and tobacco will go up. Spirits will see a 39 per cent increase, while tobacco will rise 31.5 per cent.

Beer-drinkers will suffer the most, with a 42.5 per cent rise.

The legislation also axes about 80,000 jobs at law enforcement agencies.

Meanwhile, Mr Yanukovych called from exile for referendums to be held across the country to determine the future status of every Ukrainian region, instead of the presidential elections the coup government has planned for May 25.

"As president ... I ask every single sensible citizen of Ukraine not to let yourselves be used by the impostors.

"Demand a referendum on determining the status of every region in Ukraine," Mr Yanukovych said in Russia.

"Only a nationwide referendum ... can stabilise the political situation and preserve the sovereignty and integrity if Ukraine," he claimed.