Latest Yatsenyuk resignation rumors go unproven

Ukrainian Prime Minister Arseniy Yatsenyuk told the Frankfurter Allgemeine Zeitung newspaper that the president has to form a new Cabinet if he is not satisfied with the current one, Interfax-Ukraine reported on Feb. 26. The failure to form a new government will lead to early parliamentary elections in Ukraine, he said, and in preparing for them, “there will nobody to implement vital loan agreements with the IMF”.

The same day, the rbc.ua news site reported that Yatsenyuk agreed to resign, referring to anonymous sources in the Ukrainian government and parliamentary coalition. The new government being discussed will be headed by the American-born Finance Minister Natalie Jaresko, the rbc.ua report said. Other news sources, including hromadske.tv, reported the same day that Jaresko received an offer to lead the government. Yatsenyuk’s press secretary immediately denied the reports and Yatsenyuk delivered his regular weekly television address on Feb. 28, when he presented his government’s plan for 2016.

Alexander Paraschiy: Yatsenyuk has clearly stated that his dismissal may lead to the postponement of the next IMF tranche, a scenario that could escalate the financial crisis and is not desired by key power brokers. Moreover, Yatsenyuk’s parliamentary faction is the backbone of the current coalition, the disintegration of which can lead to early parliamentary elections and escalation of the political and financial crisis. So it’s vital for the president to peacefully agree with Yatsenyuk, either on extending his government or his resignation and formation of a new Cabinet.

Jaresko, who has been at the center of Ukraine’s IMF talks, could indeed be a good substitution for Yatsenyuk as prime minister. She has been long speculated as an ideal technocrat for prime minister, but her position currently as a member of Yatsenyuk’s team suits all the major political players within Ukraine’s establishment, in our view.