Ukraine is facing a significant shakeup in its government with a major cabinet reshuffle currently underway. This wave of resignations and dismissals has been framed by President Volodymyr Zelenskyy as a way to bring ‘new energy’ to the government, strengthening the country in its ongoing battle against Russia’s invasion. However, the timing of this major change has led many to question if there are other forces at play, particularly the influence of the International Monetary Fund (IMF).
One of the most notable departures is that of Foreign Minister Dmytro Kuleba, a recognizable face of Ukraine on the global stage. His resignation follows a string of other resignations and dismissals, including Deputy Prime Minister for European Affairs Olga Stefanishyna, Minister of Strategic Industries Oleksandr Kamyshin, Minister of Justice Denys Maliuska, and Minister of the Environment Ruslan Strilets. Additionally, Rostyslav Shurma, a top aide to Zelenskyy, was dismissed through a presidential decree following allegations of exploiting his position for personal gain. While the Ukrainian parliament approved the resignation of four ministers, the removal of the deputy PM and another senior official failed to secure enough votes. Kuleba’s resignation is expected to be voted on Thursday.
While Zelenskyy emphasizes the need for renewed energy within his administration, the timing of these changes coincides with an ongoing IMF mission, raising the question of whether the fund is influencing the cabinet reshuffle. The IMF is a major international lender to Ukraine, playing a vital role in supporting the country’s war-torn economy. The fund’s $15.6 billion lending program, spanning four years, is part of a wider global economic support package crucial as Ukraine prepares for its third winter of conflict. Notably, the IMF mission commenced on Wednesday, just hours after the resignations, to conduct the fifth review of Ukraine’s lending program.
The IMF typically provides funding in installments, contingent on Ukraine’s progress in implementing agreed-upon policy actions, known as ‘prior actions’. These commitments often center around economic measures like fiscal reforms and restructuring the banking sector, but can also encompass governance reforms. Considering the widespread public concern over corruption within Ukraine’s government, the cabinet reshuffle could be viewed as aligning with the IMF’s governance reform criteria.
Corruption has been a persistent issue in Ukraine, and its significance is heightened during wartime, emphasizing the need for transparency and effective governance. The cabinet overhaul presents an opportunity to address these concerns, signaling to international donors, including the IMF, that Ukraine is committed to reforming its governance structures. In this context, the cabinet reshuffle could be perceived as a move to demonstrate Ukraine’s commitment to meeting the IMF’s governance criteria, ensuring the continued flow of much-needed financial support. While there is no official confirmation of the IMF’s direct involvement in the reshuffle, the timing and nature of the changes raise questions about whether Zelenskyy’s administration is acting in anticipation of the fund’s expectations.
