Ukraine's Zelenskiy endorses energy boss as PM, will change his defence minister, lawmakers say

President Volodymyr Zelenskiy endorsed the head of the state energy company as Ukraine's new prime ​minister on Wednesday and lawmakers said he planned to replace his defence minister at a pivotal juncture in the war with Russia.

President Volodymyr Zelenskiy has endorsed Andriy Kobolev, the head of the state energy company Naftogaz, as Ukraine's new prime minister. Kobolev has been leading Naftogaz since 2014 and has experience in the energy sector, having previously worked at Royal Dutch Shell. The current defence minister, Oleksii Reznikov, is expected to be replaced, with lawmakers suggesting that Kyrylo Budanov, the head of Ukraine's military intelligence, may take over the role. This change in leadership comes at a critical time in the war with Russia.

The appointment of a new prime minister with an energy background may impact global oil prices, potentially affecting the cost of fuel and other petroleum products that consumers rely on. As the head of Naftogaz, Kobolev has experience in negotiating energy contracts and managing Ukraine's energy resources, which could influence the country's energy policy and its relationships with other nations. This, in turn, may impact the price of gasoline and other fuels, affecting households and businesses that rely on these products. The change in leadership may also have implications for Ukraine's economic relationships with other countries.

The war with Russia has had a significant impact on Ukraine's economy and energy sector, with the country relying heavily on international aid and support. Prior to the war, Ukraine was a major transit country for Russian natural gas exports to Europe, but the conflict has disrupted these supplies and led to a significant decline in Ukraine's economy. The appointment of a new prime minister with experience in the energy sector may be an attempt to stabilize the country's energy sector and attract investment to support its economic recovery. Insiders know that Ukraine's energy sector is critical to its economic survival and that the new prime minister will face significant challenges in managing the country's energy resources.

The Ukrainian parliament is expected to vote on the appointment of the new prime minister and defence minister in the coming days, with a decision likely to be made by the end of July. The new prime minister will face significant challenges in managing the country's energy sector and negotiating with international partners to secure aid and support. Surprisingly, despite the significant challenges facing Ukraine, the country's economy has shown signs of resilience, with some forecasts suggesting that it may grow by up to 3% in the next year, driven by a rebound in agricultural production and a gradual recovery in consumer spending.