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02/12/2016

Tymoshenko dampens hopes for quick end to Ukraine leadership crisis

Europe's East

Tymoshenko dampens hopes for quick end to Ukraine leadership crisis

Former Ukrainian prime minister and the leader of Batkivshchyna (Fatherland) party, Yulia Tymoshenko, speaks in parliament on 29 March. [Reuters].

Ukraine’s prospects of forming a new coalition – vital to get IMF loan talks back on track – were thrown into fresh doubt on Tuesday (29 March), after Yulia Tymoshenko demanded the inclusion of her Fatherland Party in the new government.

Tymoshenko’s intervention dampened expectations of an imminent deal to end months of political infighting that have delayed Western-backed reform efforts and left Ukrainians increasingly disillusioned with the pace of change after the Maidan protests which brought pro-Western leaders to power.

Reports: New Ukrainian government in the offing

Ukrainian Prime Minister Arseny Yatseniuk’s party has agreed with President Petro Poroshenko’s faction and the Fatherland party – all former coalition partners – to form a new alliance, the head of Yatseniuk’s People’s Front party, said on Monday (28 March).

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The scale of the challenge for any new administration was laid bare on Tuesday by the sacking of a reformist senior prosecutor, who at a news conference accused vested interests of throttling his efforts to tackle corruption in the prosecution service.

Tymoshenko’s requests include scrapping a tax on pension payments and rolling back energy price hikes. The latter is a key reform implemented under Ukraine’s bailout program from the International Monetary Fund.

The lack of a stable coalition capable of pushing reforms through parliament has derailed talks for a new $1.7 billion loan from the IMF. The Fund has warned that political paralysis is putting the entire $17.5 billion aid program at risk.

Tymoshenko’s comments suggested a coalition was far from agreed on, despite an announcement by Prime Minister Arseny Yatseniuk’s party of a new alliance with Fatherland, and the faction belonging to President Petro Poroshenko.

Tymoshenko “is demanding a stack of political laws be voted on before joining the coalition. Everyone has to go back to the drawing-board,” a source in Poroshenko’s faction said.

Fatherland is the smallest party in parliament, but the support of its 19 lawmakers is enough to give the coalition a majority when added to the 216 MPs from Poroshenko’s and Yatseniuk’s factions.

Parliamentary Speaker Volodymyr Groysman, a 38-year-old former mayor and ally of Poroshenko, has been put forward as a replacement prime minister, but Yatseniuk has refused to step down until a new coalition agreement is signed.

Anton Gerashchenko, a lawmaker in Yatseniuk’s faction, said the three-party coalition had not been formalised.

The head of Yatseniuk’s party, Maksym Burbak, said they did not expect any final coalition agreement before next week.

Failure to form a coalition could trigger snap parliamentary elections, which critics say would delay reforms further and boost support for populist parties who oppose the IMF-backed austerity measures.

Meanwhile the prosecutor’s office was similarly immersed in high-level squabbling.

Parliament approved the forced resignation of General Prosecutor Viktor Shokin – an ally of Poroshenko – but before the vote his office announced that he had dismissed top reformist prosecutor, Davit Sakvarelidze, for “grossly violating” the ethics of his post.

Sakvarelidze, who has been in a long-running feud with Shokin, said the dismissal of him and his colleagues amounted to “a cleansing of people who are prepared every day to fight corruption and the old guard without compromise”.

Aivaras Abromavicius, a former economy minister who recently  resigned in protest over overwhelming corruption, welcomed on Twitter the resignation of Shokin, but deplored the ousting of Sakvarelidze and of another reformer, ex-Deputy Prosecutor General Vitaly Kasko. Like Sakvarelidze, Kasko has clashed with Shokin and accused him of corruption and derailing reform.

Kasko said Shokin had taken revenge by launching five criminal cases against him.

Resignation of reformist minister sheds light on rampant Ukraine corruption

Ukraine’s Economy Minister, Aivaras Abromavicius, abruptly tendered his resignation today (3 February), saying overwhelming corruption had stifled his efforts to push through measures essential to getting growth back on track in the cash-strapped country.

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