Top Ukraine reconstruction official quits, citing ‘systemic obstacles’

KYIV — Mustafa Nayyem, the head of Ukraine’s restoration and infrastructure development agency, abruptly resigned on Monday, claiming the Ukrainian government is undermining his agency’s work on fortifications and logistics infrastructure.

His resignation came a day before the start of a two-day conference in Berlin dedicated to international support for Ukraine’s reconstruction after the war with Russia has ended.

Nayyem announced his resignation in a post on Facebook, citing “systemic obstacles that prevent him from performing his powers effectively.” His agency has had “to face constant confrontation, resistance and artificial obstacles,” he said.

The final straw for Nayyem appeared to be the cancellation of his planned participation at the June 11-12 conference in Berlin by Ukrainian Prime Minister Denys Shmyhal. At the Berlin gathering, Kyiv officials will try to persuade international colleagues and private investors to finance the long-term recovery of Ukraine and the protection of the country’s energy infrastructure, which has faced a barrage of Russian attacks.

Nayyem’s resignation comes one month after Infrastructure Minister Oleksandr Kubrakov was dismissed in a government reshuffle. Kubrakov is yet to be replaced.

The absence of both infrastructure officials at the Ukraine Recovery Conference in Berlin is likely to raise questions about Kyiv’s ability to overcome bureaucratic challenges around its efforts to protect critical infrastructure and rebuild the country, Olena Halushka, co-founder of the International Center for Ukrainian Victory think tank, told POLITICO.

“Partners have provided and continue to provide us with assistance worth billions of dollars, they rightly expect transparency, accountability and predictability from the Ukrainian authorities,” Halushka said.

Kyiv is eager to prove it is still transparent and reliable despite the evident management problems at the two main government bodies responsible for reconstruction. Finance Minister Serhiy Marchenko stressed on Monday that Ukraine’s recovery is not about personalities, but about institutions, and that the personnel issues would not undermine Kyiv’s ability to attract investments.

In Berlin, Ukraine will be represented by the ministers of foreign affairs, finance, economy, social policy, energy and strategic industries, as well as local mayors and governors. Ukrainian President Volodymyr Zelenskyy also is expected to attend, though the president’s office hasn’t announced it officially for security reasons.

Prime Minister Shmyhal blocked Nayyem’s participation at the Berlin conference because Nayyem was scheduled to present a report in Kyiv on his agency’s progress on reconstruction on June 12, according to an official with knowledge of the matter, granted anonymity to discuss nonpublic matters.

Rebuilding Ukraine

The total cost of rebuilding Ukraine over the next decade is estimated at $486 billion, which is about 2.8 times Ukraine’s economic output for 2023, the Ukrainian government said in a report. Russian attacks have destroyed more 800 Ukrainian power stations, or about 50 percent of energy generation in the country, Shmyhal said in May.

Halushka, of the International Center for Ukrainian Victory, said that after the latest Russian attacks on the energy infrastructure, “the ability of Ukraine to properly prepare for winter depends, without exaggeration, on the survival of our cities and towns.”

The total cost of rebuilding Ukraine over the next decade is estimated at $486 billion. | Sergey Bobok/Getty Images

“All the forces of the government should be directed to solving this problem,” Halushka said.

Kubrakov and Nayyem, along with local governments, were responsible for building fortifications throughout Ukraine that were supposed to protect energy infrastructure.

But after a wave of Russian attacks on energy facilities this spring, doubts in the president’s office started to surface about the effectiveness of the work. The Ukrainian parliament cited the need for ministerial reforms when it approved Kubrakov’s dismissal in early May. A Ukrainian government official familiar with the matter cited political rivalry as the main reason for his dismissal.

Nayyem complained about bureaucratic “nightmares” in his Facebook post.

Both Nayyem and Kubrakov have earned praise for their performances from Ukrainian civil society and had good relations with foreign partners and even helped Ukraine’s anti-corruption authorities uncover corruption in the ruling party.

Zelenskyy’s office did not respond to a request for comment.