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A. Abromavičius, who resigned from the previous administration of Ukraine’s president complaining of corruption, is waiting for his resignation to be confirmed by Ukraine’s current leader, Volodymyr Zelensky, a Lithuanian resigning from the head of the state-controlled arms manufacturer Ukroboronprom. .
Although his departure is scheduled this time, clear parallels can be found with his first withdrawal: in particular, his outrage at the diminishing determination to fight bribery and restructure the country’s economy.
Zelensky, a 42-year-old political rookie who was unexpectedly elected president in 2019, could, according to experts, become the one to deal with a corrupt Ukraine, where big business gained the most influence after the collapse of the Soviet Union.
After forming the reformed government, the president soon dissolved it, arguing that it was not getting the desired results, and handed over power to the veterans. Even before that, some people worked in the administration of the infamous former president Viktor Yanukovych.
The reorganization saddened investors and voters alike: changes in the management of the central bank and foreign company directors on the boards of state-owned companies also contributed to the pessimism. V. Zelensky’s popularity is currently the lowest since the beginning of his term.
“The most advanced minds are being replaced by conservatives, that is the greatest danger. Without a doubt, such a personnel policy leads to corruption, “said A. Abromavičius during a telephone interview.
A. Abromavičius, 44, originally from Lithuania, acquired Ukrainian citizenship in 2014 to become Yanukovych, with the support of the Kremlin, after the protests, to become the country’s economy minister.
In 2016, he resigned, defending the decision under pressure from appointments in state-owned companies and accusing the then-politician close to then-President Poroshenko of bribery.
In 2019, the Lithuanian came to Ukroboronprom to oversee the audit and increase transparency, improve corporate governance and operational efficiency. Although the salary itself was denied, the question of payment to foreigners working in Ukrainian state-owned companies worries creditors abroad.
Foreign nationals appointed to supervisory boards, where they are tasked with improving governance standards, have received pay cuts of $ 1,660 on average. It was argued that such a decision would reduce the burden on the country’s economy due to the COVID-19 pandemic.
While the salary cap should apply to all civil servants and government officials, most of the salaries are already on track.
The International Monetary Fund is calling for a salary cap to be lifted and threatening to cut $ 5 billion otherwise. funding of the support program in dollars. Some leaders have decided to stand down in protest, including Anders Aslund, an economist from Sweden who worked for the Ukrainian railways.
“The president and his outspoken politicians do not believe in effective corporate governance,” Aslund wrote in his column last week.
The foreign board members “worked very hard to try to improve Ukraine’s state enterprises. “We only received insults and obstacles from the president (the only president of Ukraine that we have known).”
Ukroboronprom is undergoing a comprehensive restructuring, but politicians stand in the way, says A. Abromavičius: “Every political change slows everything down a bit.”
Ukraine’s status on Transparency International’s Corruption Perceptions Index has practically not improved since 2015, meaning that supporters of the reforms have yet to make a breakthrough.
“Currently, there is a struggle over which development direction Ukraine will choose: east or west,” says A. Abromavičius.
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