You're reading: Khoroshkovsky becomes finance minister

President Viktor Yanukovych appointed top ally and Security Service of Ukraine chief Valeriy Khoroshkovsky as finance minister on Jan. 18, a move seen as consolidating the president’s control over economic policy as the nation prepares for a possible new global financial crisis.

Khoroshkovsky, who stepped aside as head of the SBU, replaced Fedir Yaroshenko at the Finance Ministry.

The latter resigned hours earlier as part of a government reshuffle that analysts said weakened the hand of Prime Minister Mykola Azarov. While Yaroshenko was seen as a purely technical figure loyal to Azarov, Khoroshkovsky is known to be at odds with Azarov.

Khoroshkovsky, a wealthy media tycoon and one of the richest Ukrainians, served as economy minister in 2002-2004 in a Yanukovych government.

When in 2004, Khoroshkovsky left the government, he harshly criticized the conservative management style of Azarov, who was then first deputy prime minister. Some analysts suggested the appointment of the young, carefully groomed Khoroshkovsky could be a step in the direction of replacing Azarov eventually.

“Knowing Khoroshkovsky personally, I can say that this is the position [as finance minister], where he can literally show his effectiveness, unlike as head of the SBU. It is quite possible that this is the future prime minister,” Vladimir Granovski, a former political adviser to Khoroshkovsky, wrote on his Facebook page following the news about the appointment.

Khoroshkovsky also has had business dealings with billionaire Dmytro Firtash through the UA Inter Media, the nation’s largest television holding. Firtash also owns major chemical plants and is a co-owner of controversial gas trader RosUkrEnergo.

Khoroshkovsky’s elevation as finance minister may exacerbate tensions among competing groups within government. Analysts said the ministry’s duties may be expanded to include tax and custom duty collection.

Kyiv Post staff writer Yuriy Onyshkiv can be reached at [email protected]