Shmyhal resigns as Ukrainian Prime Minister: The largest government reshuffle since the start of the war is expected

Ukrainian Prime Minister Denys Shmyhal said on Monday he had resigned, part of the biggest wartime government reshuffle expected this week, Reuters reported.

Ukrainian President Volodymyr Zelensky on Monday nominated First Deputy Prime Minister Yulia Sviridenko to replace Shmyhal.

Sviridenko, who is also the economy minister, is a close and long-time ally of Zelensky.

Shmyhal, who has served as prime minister since March 2020, is expected to be appointed as Ukraine's new defense minister, Zelensky said on Monday.

Parliament is due to vote on Sviridenko's nomination later this week. Zelensky said he had already discussed with her priority tasks for the next six months.

"We are preparing the initial steps of a renewed government," he said on the Telegram app, posting a picture of their meeting in his office.

Key tasks would be to increase domestic arms production and implement reforms to unlock Ukraine's economic potential, he said.

The tremors, the largest since the Russian invasion in February 2022, come as Russian forces continue their strong advance in eastern Ukraine, and the prospects for any quick ceasefire agreement look dim, according to Reuters.

Ukraine's economy remains smaller than before the war, despite local businesses adapting to wartime realities and billions in foreign aid from Kiev's Western allies to maintain macroeconomic stability.

Next year, the country faces the difficult task of financing its growing budget deficit, as foreign aid is expected to decline.

Ukrainian officials have said the country will need about $40 billion in external financing in 2026. Parliament is scheduled to vote on nominations for a new government on Thursday, lawmakers said.