Infighting snowballs in Ukraine as PM urges parliament to dismiss finance minister Danyliuk

Infighting snowballs in Ukraine as PM urges parliament to dismiss finance minister Danyliuk
Ukrainian Prime Minister Volodymyr Groysman asked the Rada to dismiss Finance Minister Oleksandr Danylyuk / Ukraine president office
By bne IntelliNews June 7, 2018

Ukrainian Prime Minister Volodymyr Groysman has signed a request to the nation's parliament, the Verkhovna Rada, urging the legislative to dismiss the country's Finance Minister Oleksandr Danylyuk, the PM said on June 6.

"After the conflict provoked by him at a government meeting he allowed himself actions that, in my opinion, are incompatible with the further stay in office of a member of the cabinet," Groysman wrote on his Facebook page.

Groysman is upset by a letter sent recently by Danylyuk to the G7 ambassadors in Kyiv, in which the latter disclosed details of his conflict with the PM.

Specifically, Danylyuk unsuccessfully tried to get his adviser Yana Bugrimova appointed as deputy minister during a cabinet meeting on May 23. "I've been insisting on appointing Jana for more than two years - since my first days in the office," he wrote.

Danylyuk also informed the G7 ambassadors that he offered Groysman to file a request for the minister's resignation to the nation's parliament, the Verkhovna Rada. "I [have] reached the limit in looking for compromises [with the PM]," the letter reads.

Groysman, in turn, branded the letter as unacceptable. "We discussed the issue with colleagues-ministers after the cabinet meeting in the presence of Danylyuk. All colleagues believe that even this letter was absolutely unacceptable, and his reaction was unjustified and emotional," Groysman said in a televised interview in late May.

The prime minister said that Danylyuk apologized for the letter and said that it was his mistake. "Nevertheless, this was the letter not about Danylyuk, who wrote to the European Commission, this was the letter, which disturbs confidence in Ukraine, which is absolutely groundless," Groysman added.

In April 2016, Danylyuk replaced US-born Natalie Jaresko as the country's finance minister. The former investment manager previously served as deputy head of President Petro Poroshenko's administration, as well as being a freelance advisor to Viktor Yanukovych before his ouster.

The minister is one of Kyiv's key negotiators with the country's main donor, the International Monetary Fund (IMF). However, his possible resignation is unlikely have any dramatic effect on Kyiv's cooperation with the multinational lender due to the fact that the IMF's $17.5bn support programme has been de-facto stalled since 2017.

Timothy Ash, a senior sovereign strategist at BlueBay Asset Management, believes that Groysman has chosen unfortunate time for the motion due to the fact that the parliament is going to vote for an independent anti-corruption court legislation on June 7.

"Rada is currently focused on the anti-corruption court, which is due to undergo a second reading perhaps as early as tomorrow. This public spat between Groysman and Danylyuk will be a distraction therein. Remember the anti-corruption court passage is key to getting IMF lending back on track," Ash wrote in a note on June 6.

"I am sure that law makers would be delighted to vote the reform-minded Danylyuk out of office - albeit I think Poroshenko's block in the Rada would struggle to get support for a replacement," he added.

Ash also wonder "if the game plan is to create some kind of parliamentary-presidential logjam or constitutional crisis", which would then allow Ukrainian President Petro Poroshenko to table legislation to move from a presidential to parliamentary democracy. "This would overcome his own lowly poll ratings and at this stage the limited chances he has of securing a second term in office as president," he added.

Meanwhile, Danylyuk said on June 6 that he had been asked to support "political corruption" or to quit after Groysman formally asked parliament to dismiss him.

"Translated into human language it is the distribution of money to the projects of ... lawmakers," the minister said in a statement. "This - political corruption - is known by people as 'buckwheat'".

"Buckwheat" refers to the practice of bribing voters with food or by other means during an election campaign. Ukraine holds presidential and parliamentary elections in 2019. Danylyuk has also accused Groysman of blocking his attempts to reform Ukraine's tax service, according to Reuters.

Recently, dt.ua news outlet reported that Groysman considers replacement of the minister by Nina Yuzhanina, head of parliamentary committee on fiscal policy and a close associate of the nation's President Petro Poroshenko. Yuzhanina is well-known for drafting an alternative tax reform in 2015, which was heavily criticized by the country’s main donor, the IMF.

News

Dismiss