11/10/2014 Ukraine: Daily Highlights - Russian President Putin will pull back troops from the “exercises” on Ukrainian border

11/10/2014 Daily Highlights from the “Digest & Analytics” News Agency

Eastern Ukraine conflict develops as а clone of Transnistria one. Ukrainian army is gradually getting replenished with military equipment. Donbass loss made a huge hole in the Ukrainian budget.

Ukraine

• Prime Minister Yatsenyuk reported that Donbass was short on payments to the state budget of up to 3.7 bln as a result of the military operation. Its debt for natural gas and electricity is 700 mln. UAH, which leads to issues with social payments in other regions. The Government will help local budgets to cope with these problems.
• President Poroshenko during his trip to Kharkiv claimed that the region will be well protected by a new fortified defense system from the south.
• Donetsk governor Kihtenko believes that Ukraine should pay social security and pensions in the occupied regions.

Kyiv

• Kyiv city authorities are cutting the number of ZhEKs (soviet-style civilian living premises management offices) by four times but will not liquidate them completely.

War in Ukraine

• Despite the proclamation by the “DPR leader” Zakharchenko of the five day truce, militants shelling  of Donetsk residential areas are ongoing and civilians are being killed. Terrorists continue to attack Ukrainian army positions. Another attack on Donetsk International Airport has been repelled.
• Anti-terrorist Operation Headquarters  denied the information desseminated by Russian media that delimitation agreement has been reached with Donbass “republics”.
• Donetsk Governor Kihtenko declared he is ready for negotiations with DPR representatives if those are going to be constructive.
• President Poroshenko announced that demobilization of conscripted soldiers will  be possible only after achieving of a durable truce in Donbass.
• Russian humanitarian aid is being sold in Donetsk stores.

International

• Russian President Putin ordered the Minister of Defense to pull back troops from the “exercises” on Ukrainian border in Rostov region. As Russian regular troops withdraw from the country, international observers evidence increase of the mercenaries flow to Ukraine.E
• Russia simplified the process of getting a refugee status for those from Donbass within the re-settlement from abroad program.
• EBRD president believes that Ukraine possessес enough naturalgas for the coming heating season.

Trends

• Freezing of the conflict in Donbass will help Ukraine to enhance its military power. On the other hand, it will become a "black hole" for the budget, forced to carry out social security payments without receiving taxes in exchange. Absense of an official recognition as occupied territories of the territories of the Eastern Ukraine, controlled by pro-Russian terrorists, would not allow for ensuring the rights of Ukrainian citizens living there.