Russia Threatens With Pulling Bailout As Ukraine Government Resigns

Tyler Durden's picture

Mykola Azurov, the prime minister of Ukraine, (and his cabinet) has resigned. The move comes as the government faced losing a no confidence vote and being stripped off their power. It seems the opposition (pro-Europe) are gaining momentum once again as the Ukraine also repealed the controversial anti-protest laws that created more tension last week. The Russians are not amused and have warned that they may reconsider the $15 billion bailout offer if the current government is removed. The Ukrainian Hryvnia is continuing its collapse on this news and has dropped towards record lows (though bonds are rallying).

 

 

The opposition is clearly gaining momentum...

Mykola Azarov, the prime minister of Ukraine, submitted his resignation on Tuesday hours before he risked being stripped of his powers in a vote of no confidence in Parliament. His offer to quit was the latest sign of the building momentum of the opposition in the ongoing crisis.

 

In another concession to the opposition, the pro-government political party in Parliament, the Party of Regions, voted together with the opposition to repeal most of the laws in a package of rules limiting free speech and assembly the lawmakers had passed just a week earlier.

 

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One elderly woman in a kerchief giddily told the Ukrainian channel 5 television after Mr. Azarov’s resignation, “Thank God you heard us!”

But the Russians are not happy (via WSJ):

Russia may reconsider its $15 billion bailout offer to Ukraine if the current government is removed, a senior official said Tuesday, hours after Ukraine's prime minister offered his resignation in an effort to calm a growing protest movement. "There is no decision yet, but it is self-evident," that further distributions of the loan would be reviewed if the government of Mykola Azarov was to be dissolved, the official said speaking on condition of anonymity.

However, this is far from over...

Opposition leaders have so far called the president's concessions "too little too late," and appear to be in no mood to compromise with him as protesters have seized government buildings in the west and center of the country.