Poroshenko keeps Kolomoisky ally as Odesa governor

Ukrainian President Petro Poroshenko has agreed to keep Ihor Palytsia as the head of the Odesa State Oblast Administration (governor), the Ukrayinska Pravda news site reported on Nov. 28, citing his advisor, Zoya Kazanzhy. She said the president personally informed Palytsia of his decision when meeting with him.  Palytsia is a long-time ally to Igor Kolomoisky, among Ukraine’s biggest oligarchs who is credited with organizing the military defense of southeastern Ukraine, including the vulnerable Zaporizhia region. Poroshenko’s alliance with Kolomoisky is considered to have formed the backbone of the nation’s military defense against Russian aggression this year.

Zenon Zawada:  Despite their critical alliance, every few months this year a conflict has erupted between the teams of Poroshenko and Kolomoisky, the latest being last week. MP Borys Filatov, a close advisor to Kolomoisky, left the Poroshenko Bloc and joined several other Kolomoisky-aligned MPs in abstaining in their support for parliamentary speaker Volodymyr Groysman, who is aligned with the president.

Fitalov has since downplayed the conflict on his Facebook page and Poroshenko’s approval of Palytsia remaining as Odesa governor indicates the two teams have made amends. Yet some nasty words and gestures were exchanged. In our view, the Poroshenko-Kolomoisky rivalry is among the biggest in the Ukrainian government that therefore has the potential to undermine political stability.

Kolomoisky is taking advantage of his established control over the southeastern regions to find new revenue streams and consolidate control over new assets, among them the Odesa Portside Plant. Another oligarch, Dmytro Firtash, is also competing for it and their business competitioncould spark political rows.