Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Ukraine government puts on united front amid political crisis

Published 02/04/2016, 03:55 PM
Updated 02/04/2016, 04:20 PM
Ukraine government puts on united front amid political crisis

By Pavel Polityuk and Natalia Zinets

KIEV (Reuters) - Three Ukrainian cabinet members who had previously tendered their resignations will now remain in their posts, the government announced on Thursday, a show of unity a day after the abrupt exit of a key minister.

The Ukrainian government announced on Thursday that three cabinet members who had previously tendered their resignations would remain in their posts, putting on a show of unity a day after the abrupt exit of a key minister.

Prime Minister Arseny Yatseniuk held an emergency cabinet meeting that looked to repair the damage from the departure of Economy Minister Aivaras Abromavicius, which had been seen as a major blow to Ukraine's fight against corruption.

Abromavicius quit saying he would not become a "puppet" for corrupt vested interests, and accused a close ally of President Petro Poroshenko of trying to siphon off state funds.

The move has highlighted deep divisions within the ruling coalition and prompted Ukraine's western backers to warn that the country is reneging on the reform promises it made in exchange for billions of dollars in financial aid.

Yatseniuk said the government was determined not to stray from its reform drive. "Our principle is one for all and all for one. We came as a united team and we will work as a united, team," he said.

"We demand ... an end to blackmail, political pressure (and) under-the-table dealings for positions of ministers, their deputies or the heads of state companies," he said.

The health, agriculture and infrastructure ministers, who had also previously tendered their resignations, said they would continue to work in the cabinet provided they would be allowed to pass reform initiatives without political interference.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

However Abromavicius, whom Ukraine's international supporters championed as a key reformer, does not appear to have reversed his decision. Television footage of the meeting showed an empty chair next to Finance Minister Natalia Yaresko, where the economy minister would normally sit.

His resignation, followed by several of his deputies, has raised concerns among local politicians that Kiev's relations with its Western backers could sour, threatening vital loan aid.

AID MONEY

Parliamentary Speaker Volodymyr Groysman earlier said Ukraine was entering a "deep political crisis" and called for a government reshuffle.

The episode has shone an uncomfortable spotlight on Ukraine's efforts to tackle corruption, which the government pledged to do when it came to power after the Maidan protests in the winter of 2013/2014.

"What happened is a catastrophe for the whole country," Leonid Yemets, a lawmaker with People's Front that belongs to Yatseniuk, told Reuters.

"Think about it: how can we now talk with out partners in the West, with our donors, after the minister comes out and says that the deputy head of the president's faction is corrupt. Who will want to speak with us after this?"

Abromavicius accused Ihor Kononenko, an ally of Poroshenko, of lobbying to get his people appointed as heads of state companies, culminating in an attempt to appoint one of his people as Abromavicius's deputy.

Kononenko denied the accusations as "completely absurd", and said Abromavicius was trying to shift blame for his own failures in running the ministry.

Ukraine relies on aid money from its Western backers, including the International Monetary Fund, the United States and the European Union, to stay afloat.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Its economy shrunk by more than 10 percent last year, dragged down by its war against pro-Russian separatists, who have taken control over a swathe of the country's eastern industrial heartland.

The government is hoping the IMF will soon decide to disburse a third tranche of loans - worth $1.7 billion - which has been delayed since October.

"The consequences of (the economy minister's) announcement are hard to predict, but it's clear that they are very negative," said a lawmaker from Poroshenko's faction, who declined to be named. "It could lead to the postponement of the IMF tranche."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.