I mean - we won't drop to Div1B (Elite division being the 1st tier, Div1A - the 2nd).
The Ukrainians were playing in Div1B last year against such powerhouses as Estonia, Lithuania and Romania (the bottom line being that a comparison with Ukraine doesn't make any sense).
And, yeah, Nolan will continue to coach our team at least until the World Champs this year. But it doesn't look like he'll be a long-term coach, especially if he's going to stay in the NHL.
Most European teams tend to play exhibition games/tournaments a few times a year, including training camps, taking a look at the B team, etc. So if he's unavailable all the time, he's more of a part-time coach and the president of the Latvian Hockey Federation doesn't like that at all.