Ukraine Entering `Serious Political Crisis’ After Minister Quits
The speaker of Ukraine’s parliament warned the nation is entering a “serious political crisis” after its reform-minded economy minister tendered his resignation and accused presidential party members of corruption.
“This crisis must be resolved by political parties’ representatives along with the president,” Volodymyr Hroisman told reporters Thursday in the capital, Kyiv. “We must update the coalition agreement as a clear plan to execute. We need to reshuffle the government for those tasks. We must end the squabbling and let those who want to conduct reform work and bring results for society.”
Economy Minister Aivaras Abromavicius announced his departure Wednesday, saying he wouldn’t be a “puppet” for officials he accuses of blocking overhauls of the ex-Soviet republic’s economy and institutions. President Petro Poroshenko said last night that Abromavicius, a Lithuanian-born former fund manager, should stay on and that his allegations should be investigated. His resignation still requires approval by lawmakers.
Ukraine’s government, which swept to power in 2014 after pro-European street protests opposing years of corruption, has seen its ratings plummet over delays in reforms. The U.S., which has made billions of dollars in financial aid contingent on progress to overhaul the economy, expressed its disappointment on Wednesday at Abromavicius’s exit. His resignation also widened cracks in the ruling coalition, which is still dealing with the war in Ukraine’s east. Poroshenko has promised changes in some cabinet positions.
The hryvnia rebounded to 25.8354 per dollar as of 2:11 p.m. in Kyiv after losing 1 percent and slipping to its weakest since March 2015 earlier today, data compiled by Bloomberg show.
In Pictures: Coal in the Time of Conflict
Take a look inside this Soviet-era coal plant in Ukraine, which is currently being “decommunized”.
Poroshenko Thursday met ambassadors from Group of Seven countries as well as Prime Minister Arseniy Yatsenyuk and Hroisman to discuss the pace of reforms and the situation with the cabinet. Hroisman will also meet coalition members this evening to discuss the shuffle, the Interfax news service reported.
Falling Short
“Poroshenko will likely seek to use the cabinet reshuffle to calm the situation and seek candidates with a pro-reform image for some key cabinet positions,” said Otilia Dhand, a senior vice president at the Teneo Intelligence consultancy in Brussels.“However, the permanent sidelining of background figures accused of corruption in close circles of both the president and the prime minister appears unlikely. Without a change in the way power is exercised in the existing political system, reforms will likely continue to fall short of expectations.”
Ukraine’s efforts to stamp out corruption brought scant progress last year, according to Transparency International, which said in January that civil society, journalists and whistle-blowers were more effective than government officials in combating graft. The nation of 43 million people ranked 130th of 168 countries in the Berlin-based watchdog’s Corruption Perceptions Index, level with Iran and Cameroon.
The results of Ukraine’s anti-graft endeavors — key to the continued flow of financial aid, including a $17.5 billion loan from the International Monetary Fund, will be assessed by lawmakers during the week of Feb. 15, when Yatsenyuk is scheduled to report to parliament on his cabinet’s performance.
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