Ukraine's finance minister stepped down on Wednesday in what analysts said appeared to be a move by President Viktor Yanukovich to assert a tighter grip on financial policy ahead of a parliamentary election in October. Though Fedir Yaroshenko was quoted by the presidential website as saying he was leaving at his own request, analysts said Yanukovich had been sharply critical of the budget strategy for 2012 and it was clear Yaroshenko was being dismissed.
In reality though, Yaroshenko has exerted little real grip on the purse strings in the cash-strapped ex-Soviet republic since taking over the finance portfolio shortly after Yanukovich won the presidency in February 2010. He has largely been an executor of commands from above rather than a policy-maker. But many saw his departure as a political blow for conservative Prime Minister Mykola Azarov whose government has sought to draw up a balanced budget in the wake of the world economic downturn.
Yaroshenko has served as Azarov's right-hand man in various positions since 1997. Though no policy swerves were forseen, analysts said his departure was likely to signal tighter control of the country's finances by Yanukovich in the run-up to the October election. Yanukovich's Regions Party, showing signs of alarm at its sagging popularity, has recently stepped up criticism of the Azarov government over its pensions and tax reform which have led to widespread protests.
There was no immediate word on a successor to Yaroshenko. But many analysts expected it to be a figure from the Yanukovich camp and maybe even someone from his inner circle of aides and associates. First deputy central bank chairman Yuri Kolobov and State Tax Administration head Olexander Klymenko have both been mooted as potential successors. "The formal reason for Yaroshenko being dismissed is a conflict around the 2012 budget between the presidential administration and the government.