Kravchuk sacks his pro-market economic aide

UKRAINE TOOK what appears to be a step backwards in its economic reform programme at the weekend when President Leonid Kravchuk fired his pro-market chief economic adviser and replaced him with a former career Communist official. Mr Kravchuk, once a party boss, was apparently bowing to increasing pressure from conservatives in the government, which is largely made up of former Communists.

The sacked economist, Vladimir Lanovoy, held the posts of deputy prime minister and economy minister. He is one of the most Western-oriented of the former Soviet republic's senior politicians and his programme of reforms had been approved by the International Monetary Fund. However, many conservatives in the Ukrainian government were reluctant to move as fast as Mr Lanovoy would have liked, and Ukraine was falling well behind Russia in its reforms.

Yesterday Mr Lanovoy accused Mr Kravchuk of not being committed to market reforms. 'The President apparently doesn't think that purely market reforms can lead the country out of the crisis,' he said. 'I think he prefers administrative measures.'

The reason given by Mr Kravchuk for the sacking was that Mr Lanovoy had joined a political movement called New Ukraine, made up of liberal politicians and businessmen that two weeks ago came out in opposition to the government. But Mr Lanovoy said the real reason was that New Ukraine supports economic reforms and Mr Kravchuk does not. 'If President Kravchuk supports economic reforms, it is illogical that he should sack me,' he said. 'I think it just means that he doesn't seek these reforms.'

Mr Lanovoy, 40, belongs to the new generation of pro-market economists and, like Russia's chief economics minister, Yegor Gaidar, 36, is a symbol of the transition to a free-market economy. Mr Lanovoy was about to steer Ukraine through a vital stage of its reforms, including rapid privatisation and new links with foreign investors. He said his removal would play into the hands of former Communists in the Ukrainian parliament, who have formed an alliance with radical nationalists.

'I have to a large extent become inconvenient to the system which still runs the economy,' he said. 'Now another man will come in and will act as he is told.' He said he now understood that he was taken into Mr Kravchuk's the cabinet four months ago 'to serve as a cover, to create an impression that renovation was under way. In fact, it was only an imitation of reforms.'

Mr Kravchuk has named Valentin Simonenko to succeed Mr Lanovoy. Alexander Moroz, the leader of the Ukrainian Socialist Party (the former Communist Party) said that Mr Kravchuk was replacing a theoretician with a practical worker and was strengthening executive power.

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Massage Therapist / Sports Therapist / Physio / Osteopath

£12000 - £24000 per annum: Recruitment Genius: An opportunity has arisen for o...

Recruitment Genius: Account Manager / Sales Executive - Contract Hire

£35000 - £60000 per annum: Recruitment Genius: This industry leader provides c...

Recruitment Genius: Project Coordinator

£28000 - £30000 per annum: Recruitment Genius: A Project Coordinator is requir...

Recruitment Genius: Area Sales Manager - Midlands

£20000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...

Day In a Page

John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Forget little green men - aliens will look like humans, says Cambridge University evolution expert

Forget little green men

Leading evolutionary biologist says aliens will look like humans
The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

The Real Stories of Migrant Britain

An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

39.8 degrees recorded on Tube

There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
Kitchens go hi-tech: From robot chefs to recipe-shopping apps, computerised cooking is coming

Computerised cooking is coming

From apps that automatically make shopping lists from your recipe books to smart ovens and robot chefs, Kevin Maney rounds up innovations to make your mouth water
Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

Jessie Cave's feminist cartoons

The Harry Potter star tells Alice Jones how a one-night stand changed her life
Football Beyond Borders: Even the most distruptive pupils score at homework club

Education: Football Beyond Borders

Add football to an after-school homework club, and even the naughtiest boys can score
10 best barbecue books

Fire up the barbie: 10 best barbecue books

We've got Bibles to get you grilling and smoking like a true south American pro
Wimbledon 2015: Nick Bollettieri - Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power

Nick Bollettieri's Wimbledon Files

Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power
Ron Dennis exclusive: ‘This is one of the best McLaren teams ever – we are going to do it’

‘This is one of the best McLaren teams ever – we are going to do it’

Ron Dennis shrugs off a poor start to the season in an exclusive interview, and says the glory days will come back
Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most