EU Representative in Ukraine: the Law on the National Bank of Ukraine Is Clear on Grounds for Dismissing Its Head

Katarina Maternova commented on the statements by the head of the National Bank about pressure related to the dismissal.

During 12 years after the Revolution of Dignity, Ukraine has made significant strides in strengthening its institutions. Specifically, on the issue of the National Bank, the EU representative in Ukraine Katarina Maternova said in response to a RBC-Ukraine journalist’s question at the event Beyond the Headlines. Assessing Ukraine’s progress as a candidate country for EU membership, held at the European HUB.

The independence of the NBU is one of the key foundations of Ukrainian sovereignty. Not only monetary, but in general, she believes.

“The independence of the National Bank is extremely important, primarily for financial stability. And, incredibly, over the five years of this brutal aggression there has been not a single moment of financial instability,” Katarina Maternova noted.

She believes that the finance minister and the head of the NBU have done a tremendous job.

“We keep in touch with both. The EU is the biggest donor and partner, and we also work very closely with the head of the NBU regarding the regulator’s challenges in the financial system. We are working a lot on the de‑shadowing of the economy,” she noted.

Maternova believes that the law on the NBU is clear regarding the grounds for dismissing its head. The EU representative stressed that the rule of law is a key requirement for EU membership.

Context

3 November, member of parliament Yaroslav Zheliønyak reported that in the circulated schedule for parliamentarians there is a discussion of Andriy Pyshny’s resignation. He noted that usually personnel issues are placed first, and this one was at the end. In his view, this demonstrates the uncertainty of the issue.

The next day, Andriy Pyshny stated that he did not draft a resignation letter and does not plan to do it “under pressure.” Pyshny reminded that by law the head of the National Bank of Ukraine serves a seven-year term, and there is an exhaustive list of grounds for early dismissal. He believes that now, when the issue of his resignation has reappeared “against the backdrop of prolonged political pressure, manipulation, a targeted and coordinated campaign of discreditation, what is being tested is not someone’s willingness to leave the post, but the effectiveness of protective mechanisms and safeguards and the state's ability to follow the rules established in law.”

Information about the possible dismissal of the head of the NBU Andriy Pyshny is appearing for the second time this year, although his term is far from ending: he was appointed in October 2022. This occurs against the backdrop of an investigation into the role of state bank Sense Bank in a corruption scheme involving collateral for the former minister Herman Halushchenko.

Pyshny denies influence over the appointment of the supervisory board adviser Vasyl Vasyli Velal. The Ukrainian Press reported that Velesevy and one of the suspects, Oleksandr Tsukerman, discussed candidates for the Sense Bank supervisory board. The appointment process for the supervisory board was supposed to be independent.