February 3, 2016
By Kateryna Choursina and Daryna Krasnolutska
Ukraine's government, (click here) splintering over issues from the war in the nation's east to faltering anti- corruption efforts, suffered a new setback as its reform-minded economy minister stepped down.
Aivaras Abromavicius, 40, a Lithuanian-born former fund manager, said Wednesday that he wouldn't be a "puppet" for officials he accuses of blocking overhauls of the ex-Soviet republic's economy and institutions. He said politicians, including one from President Petro Poroshenko's party, had pressured him to appoint "dubious people" at state-controlled companies. Government bonds slumped after his comments.
The minister's departure underlines growing dysfunction in Ukraine, where memories of broken reform promises from the 2004 Orange Revolution persist. The administration that took power in 2014 after a wave of pro-European protests has become bogged down by infighting and criticism over failing to rein in the vested interests that have controlled much of the economy for decades. Poroshenko, who must deliver reforms to maintain the flow of financial aid from allies such as the U.S. and the European Union, has promised personnel changes in the cabinet this month....
This is really not good news for the IMF. There will probably be hearings called. The fight for the heart of the nation isn't over yet.
This is really not good news for the IMF. There will probably be hearings called. The fight for the heart of the nation isn't over yet.
