Yanukovych names Khoroshkovsky Finance Minister

President Viktor Yanukovych appointed Valeriy Khoroshkovsky Finance Minister yesterday, according to an announcement on the presidential website. Earlier in the day, Yanukovych accepted the resignation of the previous Finance Minister Fedir Yaroshenko. Khoroshkovsky has been the head of Ukraine’s Security Service since March 2010, and held several previous government positions including Economy Minister. Khoroshkovsky also has significant ties and experience in the business sphere – he was president of Evraz Holding and reportedly controls Ukraine’s most popular TV station, Inter.

Brad Wells: Though rumors of a major shakeup to the cabinet have been around for at least a year, Khoroshkovsky is the highest profile “new” face to join the Cabinet of Ministers since it was installed in early 2010. Khoroshkovsky is believed to have ambition for higher political office and is viewed as friendly to powerful Ukrainian Oligarch Dmytro Firtash, who was reportedly one of the major financers of Yanukovych’s presidential campaign. While there might be some change in the management of the Finance Ministry as a result of the reshuffle, we do not believe Khoroshkovsky will pursue a more aggressive reform agenda. Rather we relate the appointment to shifting influence in government among rival clans within the Party of Regions (Yaroshenko was a close ally of Prime Minister Mykola Azarov) toward a close circle of associates around Yanukovych.