The IMF shifts Executive Board meeting on Ukraine

UKRAINE - In Brief 19 Mar 2017 by Dmytro Boyarchuk

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Interesting turn of events. Just one day before the IMF Executive Board meeting on Ukraine, scheduled previously on March 20th, the meeting was cancelled. Finance Ministry immediately published explanation claiming that the IMF requested estimates of macro-economic consequences of the official ban on cargo traffic to Donbas. So far there was no official notice on the web-site of the IMF. And indeed the key reason for the delay might stem from the IMF concerns about consequences of halted trade operations with Donbas. However, I want to draw your attention to another story which have been unfolding over the last week and which also might have affected the IMF decision. The story is related to the National Anti-corruption Bureau of Ukraine (NABU). The point is that NABU activities are subject to annual independent auditing. Since NABU has initiated resonant anti-corruption cases (like case of Roman Nasirov, Ex-Head of State Fiscal Service) many rent-seekers are looking for a way to replace Head of NABU Artem Sytnyk with someone more ‘cooperative’. For this purpose one needs loyal auditors at the commission responsible for annual auditing. Last week a big fight had been unfolding over the candidates for auditors who are expected to estimate NABU performance. Anti-corruption activists reported that a candidate with dubious reputation was selected (from the Parliament) disregard US Embassy recommended another person. Activists had been crying foul and we cannot rule out this story stand behind delayed Executive Board meeting. At least developments around NABU look more dangerous for sustainable development rather than trade blockade which had been in action already almost f...