Yatsenyuk Resigns on Failed Attempt to Increase Taxes for Oligarchs

UKRAINE - In Brief 24 Jul 2014 by Dmytro Boyarchuk
Prime Minister Arseniy Yatsenyuk resigned after coalition was dissolved. This move in light of tense situation at the east might look strange. But only from the first glance. Few days ago after the IMF mission left Kyiv the Cabinet came out with the proposal of budget revision. And the main role in these changes was related to increased rent on hydrocarbons mining. It was the key source of compensation for budget revenues shortfall in 2014. From the very beginning we had doubts how the Cabinet will pass the proposal through the parliament since it was a direct taxation of oligarchs including Igor Kolomoyskiy who is close to Poroshenko. As we see the attempt failed. How it will affect us? Firstly, it is not clear what will happen to the IMF loan now since voting on budget failed. Secondly, Arseniy Yatsenyuk will remain acting Prime Minister until new coalition created which is very unlikely for the nearest future. Thirdly, we should watch next steps of Poroshenko to understand what was the purpose of this combination. Given popularity of Yatsenyuk it is very unlikely that removing Prime Minister was the main goal of the President.

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