Ukrainian Government and Oligarchs Spar, Adding to Instability

The Ukrainian government has parted ways with a powerful oligarch after squaring off with him over the country's national oil company.

Reuters reports that Ukrainian President Petro Poroshenko fired Ihor Kolomoisky from his post as governor of the province of Dnipropetrovsk after men loyal to Kolomoisky seized control of the headquarters of UkrTransNafta, the state oil company.

Kolomoisky's forces occupied the headquarters after the government fired the company's head, who was a staunch ally of Kolomoisky. After the firing, a group of men occupied the UkrTransNafta headquarters in Kiev and established barricades.

The New York Times notes that Kolomoisky was also enraged at a new law passed by the parliament that would have reduced his decision making power in the day to day operations of the company.

The removal of Kolomoisky from the position of Dnipropetrovsk's governor has added a new element of instability to Ukraine. Dnipropetrovsk is home to much of Ukraine's industrial and natural resources and is a major engine for the national economy. Additionally, Dnipropetrovsk borders separatist dominated territory. Many observers have attributed the peace in Dnipropetrovsk to Kolomoisky's strong and immediate decision to support the new government in Kiev after the former president was overthrown in a popular revolution.

It is possible that Russian backed fighters will be able to make inroads in Dnipropetrovsk and elsewhere if Kolomoisky removes his militias.

The Times suggests Kolomoisky may have already begun to tell his forces to step down. One of the largest private militias policing the city of Odessa disappeared seemingly overnight after Kolomoisky was removed from the governorship.