August 01, 2014

31/07/2014 Daily Highlights by “Digests & Analytics Ukraine” News Agency

Ukrainian parliament almost completely passed a package of bills proposed by the Cabinet of Ministers of Ukraine during the dedicated closed session
Ukraine
  • Ukrainian parliament almost completely passed a package of bills proposed by the Cabinet of Ministers of Ukraine during the dedicated closed session, including in particular: reduction of parliamentary salaries to 6500 UAH, as well as the salaries of all other top-level officials and the ban on inspections of all regulatory agencies, except the state fiscal services. The war tax of 1.5% on any personal income including wins in state lotteries, have been introduced. Deputies didn’t support the project to send civil servants for two months of unpaid leave, proposed by the Government. Law on the management of the Ukrainian gas transportation system haven’t been as well supported and sent to the second reading. Fee for use of natural resources has risen slightly, especially for oil and gas production. 9 billion UAH have been allocated for the needs of Ukrainian army as well as 2 billion UAH to restore the infrastructure of eastern Ukraine.
  • Ukrainian parliament ratified the agreement with the Netherlands on admission to the territory of Ukraine of  700 foreign police force officers, composed of representatives of Australia, the Netherlands and possibly other countries, whose citizens were killed in catastrophe of the Malaysian Airlines MH17 flight, shot down by terrorists, in order to protect the catastrophe investigation mission.
  • No-confidence vote for the Government of Yatsenuk failed in Ukrainian parliament, having marginal number of votes, so that the Government will continue to work in its current structure.
  • President Poroshenko, when speaking in Parliament, stressed his satisfaction of the voting results as well as inevitability of the parliamentary re-elections.
  • Leader of the pro-Russian organization "Ukrainian choice" Medvedchuk, filled defamation legal action against the head of the National Security and Defense Council Parubiy, who called him a criminal, funding extremists in Donbass.
  • National Bank of Ukraine further reduced the exchange rate of Ukraainian Hryvnia (UAH): 12.09 UAH / 1$ (+9 cop), 16.21 UAH / 1€ (+10 cop), 3.36 UAH / 10 RUR (+2 kopecks). Accordingly, during the UAH devaluated vs USD by 24 copecks (~2%). Interbank exchange rates fluctuated in the range of 12,15 – 12,60 UAH / 1$.
  • State Aviation Agency published a draft order permitting domestic and international routes for airlines. According to experts, planned changes are supposed to destroy competitiveness of the industry, as being shaped for a single carrier – Ukrainian International Airlines, while prospects for having new low-cost carriers in Ukrainian market are close to zero.
Kyiv
  • Changes in the budget, adopted by Verkhovna Rada, will enable to finance the most urgent needs of the city and social benefits, as stated by the mayor of Kiev Klitschko. In addition, the city council decided to cut funding of some authorities and introduce savings on mass events and celebrations.
  • Kyiv mayor Klitschko commented that cut of hot water supply for more than half of the city consumers, is related to the preparation for the winter heating season and gas savings, as well as advised Kyiv citizens to insulate homes and buy boilers.
  • Maidan activists tents suffered a fire on Mykhaylivska  square in the capital. Authorities have repeatedly stated the need to free Maidan from tents and self-defense, but activists adamantly refused to leave the center of Kiev.
War in Ukraine
  • Tripartite meeting of the contact group to resolve the situation in Donbass, held in Minsk, with representatives of Ukraine, OSCE and Russian Federation, delivered agreement on immediate release of the hostages, as a condition for the ceasefire, opening of access corridor to the crash site of MH17 flight for international experts, as well as mode of monitoring and verification of the border between Ukraine and Russia. Negotiations will continue next week.
  • Luhansk is completely disconnected from the power supply due to ongoing  shelling. More than 50 stations of Donetsk railway are closed, more than half the cargo traffic couldn’t be alternatively re-routed. Terrorists continue shelling of residential areas and infrastructure destruction of controlled cities.
  • Russia continues to deploy military units on the borders of Ukraine and in Crimea, preparing positions for artillery and heavy armor on the main directions, shells from its territory Ukrainian Armed Forces in Donetsk and Luhansk regions, supply of military equipment, ammunition and mercenaries to DPR and LPR terrorists continues.
  • Ukrainian Armed Forces engaged in fights in Shakhtersk, Avdyivka, Mospiyno, Pervomaysk, Ilovaysk and in the south of Luhansk region.
  • Head of the Investigation Commission of MH17 flight catastrophe Groisman, stressed at the briefing that terrorists continue to hinder the admission of foreign experts to the crash site. Ukrainian army doesn’t carry any actions in the range of 20 around the crash site, as well in the range of 10 kilometers around the route of experts move.
International
  • The European Union imposed sanctions on five Russian state banks: Sberbank, VTB, Gazprombank, Vnesheconombank and the Agricultural Bank, as well as all their subsidiaries. Investors are prohibited to conduct any transactions of securities of these financial institutions. Norway intends to join EU sanctions against Russia. Moscow Stock Exchange practically did not react to the introduction of the sanctions.
  • Republican majority of the US House of Representatives voted to file a lawsuit against President Obama's abuse of the office when introducing health care reform. Decision was made on the eve of the November congressional elections.
  • On top of the payment of $ 50 billion in favor of Yukos, defined by The Hague Court against the Russian Federation, Russia is also obliged to pay $ 2 billion to the company's shareholders, as per European Court decision.
  • "Ukrtelecom" company, belonging to Akhmetov, underwent re-registration in Crimea under Russian law and will provide services under the brand "Nashtelekom."

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