Ukrainian Economy Minister Aivaras Abromavicius quit on Wednesday, February 3, saying his ministry was being hijacked by corrupt vested interests, dealing another blow to Western hopes that the country can reform itself, Reuters reports.

In his resignation statement, Abromavicius singled out a close ally of billionaire President Petro Poroshenko, accusing him of blocking his ministry's work and trying to control its revenue streams.

Abromavicius's exit could derail plans to privatize around 100 state owned companies, which were a plank of a reform program to turn around an economy which shrunk by more than a tenth last year.

"My team and I have no wish to be a cover for open corruption or puppets under the control of those who want to establish control over state money in the style of the old authorities," Abromavicius said in a statement to reporters.

"I can't be effective under such a system. It is impossible for technocrats to work with guys that want to usurp power, and make processes un-transparent," he added.

Abromavicius said Ihor Kononenko, a senior lawmaker close to Poroshenko, had lobbied to get his people appointed as heads of state companies, culminating in an attempt to appoint one of his people as Abromavicius's deputy.

"I don't want to be part of this free-for-all," Abromavicius said, adding: "but we have to wake up from lethargic sleep ... eventually the people will see that for every two steps ahead, we are going at least one step back. I don't think things will change quickly."