Ukraine’s government reshuffle aims to boost national resilience – and repair relations with Trump

Ukraine’s new prime minister, Yulia Svyrydenko, is well placed to communicate with Washington. But Zelenskyy’s government must not let wartime conditions fuel democratic backsliding at home.

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Published 22 July 2025

Updated 14 August 2025 — 4 minute READ

Image — Prime Minister Yulia Svyrydenko attends a session of Ukrainian parliament (Photo by ANDRII NESTERENKO/AFP via Getty Images) in Kyiv on 17 July 2025.

Jaroslava Barbieri

Research Fellow, Ukraine Forum, Russia and Eurasia Programme

Last week Ukraine underwent its largest government reshuffle since the start of Russia’s full-scale invasion. On 17 July the Ukrainian Parliament approved Yulia Svyrydenko – previously first deputy prime minister and economy minister – as prime minister, alongside a new cabinet.

In part, the reshuffle is an attempt to maintain Western military and financial assistance and mend relations with US President Donald Trump, following February’s diplomatic debacle in the Oval Office and months of turbulent relations.

The vast majority of ministers have retained the positions they had in the previous government.

However, domestically the reshuffle is largely viewed as a continuation of the current political trajectory, with President Volodymyr Zelenskyy (and his chief of staff Andrii Yermak) making cosmetic changes and rewarding officials who have demonstrated loyalty and effectiveness during the war.

Zelenskyy’s Servant of the People party maintains a majority in parliament, giving the president significant influence over legislation. And the vast majority of ministers have retained the positions they had in the previous government. No new faces were added to the cabinet.

The intention of the reshuffle is to support a strategy to boost Ukraine’s defence production, strengthen its strategic relationship with the US, and revitalize its war-weary economy. But the government must be careful not to be seen to waver in its commitment to Ukraine’s democracy, regardless of wartime necessity.

Self sufficiency

Bolstering Ukraine’s self-sufficiency is essential to make the country less reliant on external military aid, which has proven volatile in the past. Kyiv understands that Europe’s defence industry faces structural weaknesses that will prevent it from replacing dwindling US armaments overnight.

Ukraine has already modernized and increased indigenous armaments production, currently delivering 40 per cent of its own weapons. But to help account for fluctuations in external aid, Zelenskyy has instructed the reshuffled government to boost domestic arms production to meet half of Ukraine’s needs within the first six months. 

Appointments reflect a deliberate attempt to enhance cooperation with Washington wherever possible. 

Key priority areas will include ammunition, AI-powered interceptor drones and long-range drones and missiles for deep strikes inside Russia. To support this effort, the Ministry of Defence has been merged with the Strategic Industries Ministry and will be led by former prime minister, Denys Shmyhal.

Yet, even as the reshuffle accounts for the possibility of reduced US military support, the appointments reflect a deliberate attempt to enhance cooperation with Washington wherever possible.

Svyrydenko led the negotiations over the establishment of the US-Ukraine Reconstruction Fund, designed to develop its critical mineral resources and finance Ukraine’s recovery.

She is respected by US negotiators and her leadership and understanding of the Trump administration’s approach may help drive new cooperation.

Indeed, she could be well placed to capitalize on President Trump’s recent pledge to increase US arms supplies to Ukraine, helping to ensure it produces concrete results and potentially leads to additional support.

Reportedly, Kyiv and Washington are already discussing a deal that would bring American investments in Ukrainian domestic drone production – a technology that has given Ukraine an important advantage against the numerically superior Russian forces.

Ukraine’s economy

Another key priority set by the new government is revitalizing the country’s economy. At the Ukraine Recovery Conference in Rome, European Commission President Ursula von der Leyen announced the launch of the European Recovery Fund, a €2.3 billion initiative to support Ukraine’s reconstruction efforts. Despite these ambitious future-oriented initiatives, Ukraine needs to plug a budget gap of $19 billion already in 2026.

The European Commission is exploring options with EU member states including off-budget military grants, advancing loans from the $50 billion G7 support package (backed in June 2024) and mobilizing frozen Russian assets held in the EU.

Ukraine also faces other significant challenges to its economy. There are huge labour shortages, arising from a dramatic reduction in the working-age population due to war-related displacement, mobilization, and casualties, compounded by long-standing demographic issues. Official estimates predict a labour shortage of around 4.5 million people over the next decade.

To address these issues, Kyiv wants to develop incentives for refugees to return, particularly by creating secure employment opportunities and addressing housing needs. Human recovery also involves efforts to reintegrate Ukraine’s growing veteran population, with a strong focus on rehabilitation services.

Svyrydenko’s cabinet is also expected to continue promoting reskilling initiatives and modernizing labour legislation – to equip the existing workforce, including internally displaced persons (IDPs), women, and people with disabilities, with the skills demanded by a changing economy.

The reshuffle is also seen as a way to demonstrate that action is being taken to remove ministers accused of corruption or ineffectiveness from powerful domestic political positions. That includes two deputy prime ministers and Ustem Umerov, who has been publicly criticized by independent experts for his ineffectiveness as minister of defence. He has been appointed secretary of Ukraine’s National Security and Defence Council – a less powerful position.

Concerns over power grab

In part, Zelenskyy sees the reshuffle as an outlet for voters seeking political renewal while elections are suspended due to martial law.

Ukrainians largely accept the suspension as a wartime necessity. A May 2025 survey showed that 71 per cent oppose holding elections before the end of hostilities. Indeed, the challenges to obtaining a meaningful result would be significant: Logistical and legitimacy challenges would create security vulnerabilities; A quarter of the country’s population is made of IDPs and refugees residing abroad; And millions are still serving in the military or living under occupation.

There is growing domestic criticism of the targeting of opposition figures, crackdowns on anti-corruption agencies and encroachment on media freedoms.

However, the reshuffle has fuelled accusations of a power grab by the Zelenskyy government. The reshuffle appears to disregard a martial law ban on dismissing the cabinet. And there is growing domestic criticism of the targeting of opposition figures, crackdowns on anti-corruption agencies and encroachment on media freedoms. Any such simmering domestic political tensions will be targets for Russian disinformation efforts hoping to destabilize Ukraine.

Over three years into the war, Ukrainians have made immense sacrifices to defend their country’s sovereignty and democracy. Their willingness to resist remains strong despite exhaustion and uncertainty about the future.

But there would likely be little tolerance for an authoritarian turn by the government. It would also be difficult for European leaders to turn a blind eye to any symptoms of democratic backsliding.

Failure to address these brewing concerns risks undermining Ukraine’s social cohesion and the support of Kyiv’s partners in the West. The new government will need to demonstrate that safeguarding democracy is as crucial an aim as national unity and international support for the country’s defence and recovery plans.

An important part of that effort will be the new government’s reconstruction effort. It must uphold an inclusive approach that involves civil society, Ukraine’s private sector and international partners. This will allow Kyiv to tap into grassroots knowledge, attract investment, foster greater community ownership of recovery projects – and invest Ukrainians in a vision of a post-war country they can believe in.