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Ukraine PM Svyrydenko steps aside triggering government resignation

Ukraine PM Svyrydenko steps aside triggering government resignation

Ukrainian President Volodymyr Zelenskyy has dismissed Prime Minister Yuliia Svyrydenko, a move that forces the entire government to step down and creates uncertainty for the war-torn economy amid a major state corruption scandal.

President Volodymyr Zelenskyy has asked Prime Minister Yuliia Svyrydenko to step aside after only 12 months in the post. In a statement on X, Zelenskyy said he and the prime minister had concluded that "a reshuffle of the Cabinet is necessary" as Kyiv changes its political strategy.

Ukrainian law dictates that the prime minister's exit requires parliamentary approval and forces the entire government to resign. This creates a sudden administrative vacuum for a country attempting to manage a four-and-a-half-year war with Russia.

For European investors and international partners, the sudden government collapse raises immediate questions about the continuity of economic management. Svyrydenko previously served as deputy prime minister and economy minister, playing a central role in steering the country's finances. Her departure coincides with a turbulent period for state-owned enterprises, which are vital to Ukraine's economic survival and post-war reconstruction prospects.

The leadership change follows the exposure of Ukraine's largest corruption scandal to date. Svyrydenko recently managed the fallout from a $100 million (€87.3 million) kickback scheme at the state nuclear company Energoatom, where officials allegedly demanded 10% to 15% bribes on procurement contracts. That investigation already forced the resignation of Justice Minister Herman Halushchenko and Energy Minister Svitlana Hrynchuk.

Zelenskyy has not named a successor, but published photos of meetings with three candidates. They are Denys Shmyhal, a former prime minister who currently serves as energy minister; Defense Minister Mykhailo Fedorov; and Serhiy Koretskyi, head of the state energy company Naftogaz. The choice of premier will heavily influence how Ukraine regulates and protects its critical energy sector.

Svyrydenko, 39, played a key role in securing a minerals deal with Washington. Opposition lawmaker Yaroslav Zhelezniak suggested she might be in line to become the Ukrainian ambassador to the US. Zelenskyy noted she had been offered the chance to lead a "new and important area of relations with a key partner."

The president thanked Svyrydenko for her "clear, steady and effective work as Prime Minister, for her years of productive service on Ukraine’s team." She replied that she was "proud to have had the honor of leading the government during one of the most difficult periods in Ukraine's modern history." Zelenskyy added that he also plans to shuffle the leaders of Ukraine's law enforcement agencies.

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