11 Декабря 2017

Ukrainian sovereign Eurobonds were lower last week, although not by particularly notable margins, amid a rise in political tension in the country in the form of street demonstrations by aggressive anti-government radicals. There was also harsh criticism of the Poroshenko-led government after a legislative attack on the independence of anti-corruption bodies. The Parliamentary coalition tried to register a bill allowing Parliament to fire anti-corruption agency heads via no-confidence votes. The two main anti-corruption agencies, the NABU and the SAP, are backed by both the US and the EU and represent an important achievement in the county’s reform path after the European Revolution of 2014. It seems that battling corruption is meeting systemic resistance from the ruling elite despite the popular demand for some kind of concrete results in the most widely publicized corruption cases. Another disappointing piece of news for the country’s reform agenda was the extension of the ban on sales of agricultural land until the end of 2018. The launch of an agricultural land market is a key IMF criteria for resuming loan disbursements. The decision looks like a timid cave-in to populists and corporate interests as President Poroshenko looks to find the path of least resistance heading into the presidential election scheduled for April 2019.