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Ukraine’s path to reform is challenging, in particular in the current exceptional circumstances of the coronavirus pandemic. The European Union will continue to support Ukraine in the implementation of much needed reforms, and counts on the Ukrainian authorities to maintain their level of commitment.”
Lionizing Yakiv
Smolii has been credited in continuing the work of former NBU governor Valeriya Gontareva who lead the reform effort after the EuroMaidan revolution in 2014. The two have been credited with building a tight and committed team that dedicated to putting in place real reforms and operate independently of politics in Ukraine.
It probably helped that both Smolii and Gontareva were independently wealthy before they took up the govenorship, as both had founded successful banks – Aval and ICU respectively – before heading up the NBU.
One scenario where the top management of the NBU quit in solidarity with Smolii was a major fear of investors and has not come to pass. The team said in a statement that it will stay on to continue Smolii’s work under the leadership of deputy governor Kateryna Rozhkova until a new head is appointed. Rozhkova is a possible replacement, but she is not well liked in the Rada as she has spearheaded the NBU campaign to close hundreds of banks that belonged to well-connected oligarchs.
The Rada confirmed Smolii’s resignation on July 3, the last step in confirming his departure. The NBU team released a statement detailing Smolii achievements while in office that ​bne IntelliNews r​ eproduce in its entirety below.
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Today the Parliament approved the president’s resolution to dismiss NBU
Governor Yakiv Smolii, who filed for resignation on 1 July 2020, citing systematic political pressure. 286 Members of Parliament voted for him to step down.
“As the NBU has long been under systematic political pressure, I have made a difficult but necessary decision to resign. For months, the central bank has been pressurized to make decisions that are economically unsound, that focus on short-term, easy “victories,” and that could take a tremendous toll on the Ukrainian economy and people in the long run,” said Yakiv Smolii in his parliamentary address as he explained the reasons for leaving his post of his own volition.
“As governor, I have been safeguarding the NBU’s institutional capacity for more than two years. Together with the members of the NBU Board, we have been a shield that has protected our technocratic and apolitical institution from the influence of political forces. Over the past year, this shield has come under unrelenting pressure to give in. That includes pressure in courts, paid rallies at Instytutska Street and near the Board members’ homes, information attacks based on manipulation and lies, unfounded political assessments of the NBU’s policy and of my actions as governor, and use of the NBU Council to incite corporate conflict within the central bank. All these have been links in the same chain,” emphasized Yakiv Smolii.
16​ UKRAINE Country Report​ July 2020 ​ ​www.intellinews.com