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Ukraine could be on the brink of a civil war after its army effectively surrendered a key port city to separatists, and independence referendums set to go ahead across the east.

Despite warnings from the international community, and stern words even from the Russian president, pro-Russian activists who now control several towns in Ukraine's east will hold a referendum on Sunday for independence in Donetsk and Luhansk.

Oleksandr Turchynov, the country's interim president called the referendum illegal and said it would be "a step into the abyss".

"A dreadful terror is in train with the support of a large part of the local population," Turchinov said on his website on Saturday. "It is a complex problem when a population deceived by [Russian] propaganda support terrorists."

The vote, he said, will "mean the complete destruction of the economy, social programmes and life in general for the majority of the population in these regions".

The eastern area of Donetsk and Luhansk is the country's coal and steel belt, accounting for 16% of its economy.

But the result of the referendum could leave residents with more questions than answers. In the wake of President Vladimir Putin's call to the pro-Russian activists to cancel their referendum, the question on the ballot paper is a touch more ambiguous.

It uses a Russian word which could be interpreted as "independence" or just "self-reliance".

Roman Lyagin, head of the electoral commission for "the People's Republic of Donetsk" told the Observer that it was "not about secession, this is about more autonomy. Afterwards we can then decide how we want to live with Ukraine, independently, or with Russia."

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Ukraine's 1000 Separatist Referendum That Could Send The Country 'Into The Abyss'