My latest for Moneyweek:

Greece was upstaged yesterday afternoon as another nation stepped into the sovereign debt crisis spotlight. This time it’s Ukraine grabbing the headlines.

Ukraine’s economy shrunk by some 15% last year. The country was loaned $16.4bn by the International Monetary Fund (IMF). But the IMF funds have effectively been frozen since November, due to political turmoil.

Last month’s disputed election led to a court challenge, while the 2010 budget has been hindered by legislative fighting. According to Bloomberg, Prime Minister Yulia Tymoshenko and her cabinet may be dismissed today by parliament in a no-confidence vote.

That’s a shame for the Ukrainians, you might be thinking. But what’s it got to do with us? Plenty. Ukraine’s plight offers a grim warning for the UK – here’s why…

Read on