Another week, another crisis in Ukraine.
Just days after the downing of Malaysian Airlines flight MH17, Ukraine’s prime minister Arseniy Yatsenyuk offered to resign after two parties left the five-month ruling coalition that formed in the wake of Viktor Yanukovych’s flight from office back in February.
Those five months have witnessed an incredible amount of activity in Ukraine: Russia’s annexation of Crimea, the rise of Russian-backed rebels in eastern Ukraine, the May election of Petro Poroshenko as the country’s new president, and the crash of Flight MH17.
Those two parties, the right-wing nationalist All-Ukrainian Union “Svoboda” (Всеукраїнське об’єднання «Свобода») and the Ukrainian Democratic Alliance for Reform (UDAR, Український демократичний альянс за реформи) of newly elected Kiev mayor and former heavyweight boxing champion Vitaliy Klychko, ostensibly left the government over the onerous conditions that Yatsenyuk was trying to enact into law pursuant to the $17 billion loan package provided by the International Monetary Fund, which contemplates that Ukraine will bring its budgets closer into balance. It’s understandable that lawmakers aren’t keen to introduce austerity measures with an ongoing insurgency in eastern Ukraine and with the economy still in shambles — it could contract by as much as 6.5% this year, and the Ukrainian hryvnia has lost nearly 30% of its value so far in 2014.
But Svoboda and UDAR, which joined the pro-Western government alongside Yatsenyuk’s own ‘All Ukrainian Union — Fatherland’ party (Batkivshchyna, Всеукраїнське об’єднання “Батьківщина), knew the strings attached to the IMF loan from the outset.
Why now? Continue reading Is Yatsenyuk’s resignation good or bad news for Poroshenko?