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| Ukraine’s stability under threat after president fires pro-Kiev tycoon | |
| (about 7 hours later) | |
| KIEV, Ukraine — In a major test of Ukraine’s fragile political stability, President Petro Poroshenko Wednesday dismissed a billionaire regional ally who had established his own power base near the front-lines of pro-Russian rebels. | KIEV, Ukraine — In a major test of Ukraine’s fragile political stability, President Petro Poroshenko Wednesday dismissed a billionaire regional ally who had established his own power base near the front-lines of pro-Russian rebels. |
| The dismissal of Igor Kolomoisky, the governor of the Dnipropetrovsk region, was the latest reminder to Ukraine’s Western allies of the formidable challenges facing the shaky nation. Kolomoisky, one of Ukraine’s richest men, had been a staunch backer of Kiev, widely credited for using his vast resources to fend off challenges from pro-Russian rebels who have been fighting the government in the east of the country for nearly a year. | The dismissal of Igor Kolomoisky, the governor of the Dnipropetrovsk region, was the latest reminder to Ukraine’s Western allies of the formidable challenges facing the shaky nation. Kolomoisky, one of Ukraine’s richest men, had been a staunch backer of Kiev, widely credited for using his vast resources to fend off challenges from pro-Russian rebels who have been fighting the government in the east of the country for nearly a year. |
| But in recent days, simmering tensions between the president and Kolomoisky exploded into view after the government moved to take control of two vital energy companies in which the governor owned a minority stake. Armed men, apparently loyal to Kolomoisky, occupied the headquarters of both companies in Kiev, preventing new leadership from entering the buildings. | But in recent days, simmering tensions between the president and Kolomoisky exploded into view after the government moved to take control of two vital energy companies in which the governor owned a minority stake. Armed men, apparently loyal to Kolomoisky, occupied the headquarters of both companies in Kiev, preventing new leadership from entering the buildings. |
| The clash was a nightmare scenario for Ukraine’s Western allies, which were already cautious about channeling billions of dollars of economic support to a fragile nation that has been slow to take steps to fight corruption. The implications of Wednesday’s dismissal on stability were not immediately clear, although Kolomoisky’s allies took to Facebook with conciliatory messages suggesting that they would obey the president’s decision. | The clash was a nightmare scenario for Ukraine’s Western allies, which were already cautious about channeling billions of dollars of economic support to a fragile nation that has been slow to take steps to fight corruption. The implications of Wednesday’s dismissal on stability were not immediately clear, although Kolomoisky’s allies took to Facebook with conciliatory messages suggesting that they would obey the president’s decision. |
| Dnipropetrovsk is one of Ukraine’s most important industrial regions, with a large population sympathetic to Russia. When pro-Russian separatists started seizing territory in eastern Ukraine last year, analysts considered the region vulnerable. Kolomoisky helped keep a tight lid on separatist sentiment, in part by funding a private army that has often been better-equipped than the Ukrainian military. | Dnipropetrovsk is one of Ukraine’s most important industrial regions, with a large population sympathetic to Russia. When pro-Russian separatists started seizing territory in eastern Ukraine last year, analysts considered the region vulnerable. Kolomoisky helped keep a tight lid on separatist sentiment, in part by funding a private army that has often been better-equipped than the Ukrainian military. |
| The dismissal was announced on Poroshenko’s website, where his administration wrote that he had accepted Kolomoisky’s resignation after an early morning meeting between the two men. | The dismissal was announced on Poroshenko’s website, where his administration wrote that he had accepted Kolomoisky’s resignation after an early morning meeting between the two men. |
| “The Dnipropetrovsk region should remain a bastion of Ukraine in the east, defending the peace and tranquility of the citizens,” Poroshenko said at the meeting. In a video of the encounter between the two men, both were grave and unsmiling. | “The Dnipropetrovsk region should remain a bastion of Ukraine in the east, defending the peace and tranquility of the citizens,” Poroshenko said at the meeting. In a video of the encounter between the two men, both were grave and unsmiling. |
| Kolomoisky did not immediately make any public statements, but one of his deputies sought to calm tensions on Wednesday. | Kolomoisky did not immediately make any public statements, but one of his deputies sought to calm tensions on Wednesday. |
| “Let's stop drinking Valerian and show the world that we can be civilized people for whom our country has higher ambitions,” Borys Filatov, a deputy governor of Dnipropetrovsk, wrote on Facebook. “Do not give cause for rejoicing to our enemies, both internal and external.” | “Let's stop drinking Valerian and show the world that we can be civilized people for whom our country has higher ambitions,” Borys Filatov, a deputy governor of Dnipropetrovsk, wrote on Facebook. “Do not give cause for rejoicing to our enemies, both internal and external.” |
| Kolomoisky had been appointed governor of Dnipropetrovsk last year in the wake of the February 2014 ouster of Ukraine’s Russian-friendly President Viktor Yanukovych. | Kolomoisky had been appointed governor of Dnipropetrovsk last year in the wake of the February 2014 ouster of Ukraine’s Russian-friendly President Viktor Yanukovych. |
| Yanukovych was forced to flee after months of street protests in Kiev in which many citizens demanded an end to long-standing culture of corruption in Ukraine. Ever since the 1991 breakup of the Soviet Union, a small handful of Ukraine’s wealthiest business people had controlled political power in the country. But Ukraine’s new leadership has been slow to address those problems. Poroshenko, himself a billionaire candy tycoon, installed business allies in various government posts after his May election. | Yanukovych was forced to flee after months of street protests in Kiev in which many citizens demanded an end to long-standing culture of corruption in Ukraine. Ever since the 1991 breakup of the Soviet Union, a small handful of Ukraine’s wealthiest business people had controlled political power in the country. But Ukraine’s new leadership has been slow to address those problems. Poroshenko, himself a billionaire candy tycoon, installed business allies in various government posts after his May election. |
| The immediate conflict between the president and the governor burst into view on Thursday, after Poroshenko attempted to ouster a Kolomoisky ally who had run the UkrTransNafta energy transit company, which is majority-owned by the state. Kolomoisky sent masked, armed men into the headquarters to prevent new leadership from entering the building. | The immediate conflict between the president and the governor burst into view on Thursday, after Poroshenko attempted to ouster a Kolomoisky ally who had run the UkrTransNafta energy transit company, which is majority-owned by the state. Kolomoisky sent masked, armed men into the headquarters to prevent new leadership from entering the building. |
| A similar situation repeated itself late Sunday at another state-controlled energy company, UkrNafta, where armed men allied with Kolomoisky began building a steel fence around the entrance. | A similar situation repeated itself late Sunday at another state-controlled energy company, UkrNafta, where armed men allied with Kolomoisky began building a steel fence around the entrance. |
| Kolomoisky had been able to use his minority stake in both companies to install allies as their managers. Ukraine’s parliament on Thursday passed legislation to allow the government to assert control and the president signed it on Wednesday. He ordered the governor of a neighboring region, Valentin Reznichenko, to take temporary control of Dnipropetrovsk. | Kolomoisky had been able to use his minority stake in both companies to install allies as their managers. Ukraine’s parliament on Thursday passed legislation to allow the government to assert control and the president signed it on Wednesday. He ordered the governor of a neighboring region, Valentin Reznichenko, to take temporary control of Dnipropetrovsk. |
| Ukraine has said that it needs more than $40 billion in aid to keep its economy from imploding. But the International Monetary Fund and other Western allies have sent only a fraction, in part because of worries that the money would be disappear if Ukraine fails to rein in corruption. | Ukraine has said that it needs more than $40 billion in aid to keep its economy from imploding. But the International Monetary Fund and other Western allies have sent only a fraction, in part because of worries that the money would be disappear if Ukraine fails to rein in corruption. |
| Birnbaum reported from Moscow. | Birnbaum reported from Moscow. |