29/10/2014 Ukraine: Daily Highlights - Gas talks between Russia, Ukraine and the EU are still ongoing and will continue on 30 of October

29/10/2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency

Winners of the early elections have different views on coalition formation principles. Natural gas talks between Russia, Ukraine and the EU are still ongoing and will continue on 30 of October. Russian army and DPR & LPR terrorists could start a new offensive in the nearest future.

Ukraine

• As a result of the early parliamentary elections, expectations of the "Poroshenko Block" are that the new majority will adopt changes to the Constitution. The block also declared that Yatsenyuk  is not the only candidate for the Prime Minister position. President Poroshenko insists that coalition should be formed by his party. Party "Batkivshyna" doesn’t insist on having seats in the Government, but rather advocates key principles, mostly aligned with the coalition agreement by the "Popular Front". Party "Samopomich" proposed their own variant of coalition formation without party quotes and based on professional capabilities. Dozens of former Party of Regions members, who’ve been engaged in corruption and persecutions of Maidan, were elected to the Parliament via majority voting districts. Experts point out mass election process violations within the districts controlled by the members of «the Opposition Block», which resulted from the election legislation that the former composition of the Parliament failed to amend. «Svoboda» party claims that the elections were falsified and starts a protest action near the Central Elections Commission.
• Official exchange rate of Ukrainian Hryvnya hasn’t practically changed and Russian Rouble continues to decline: 12.95 UAH/USD, 16.51 UAH/EUR (+9cop), 3.06 UAH/10 RUB (-3cop). Demand for the currency on the interbank market is still high despite all the regulatory measures employed by the National Bank.

Kyiv

• "Zhovten" cinema, the place where the "Molodist" cinema festival is taking place, caught fire. The cinema building is being targeted by a development company, as well as a legal action is ongoing to transfer the building from the communal property.
• Lustration in Kyiv region has been accomplished by dismissal of only three officials.

War in Ukraine

• The cease-fire allowed terrorists to re-group their forces, receive armored vehicles and anti-aircraft missiles from Rrussia. The new "humanitarian convoy", which is ready to enter Ukraine without any control, will supply ammunition. Local militants were replaced with Russian military across key potential strike routes such as Mariupol, Volnovakha, Debaltseve and Artemivsk.
  conducted reconnaissance in force and fire on positions of the Ukrainian army artillery and multiple rocket launchers
  Reconnaissance-in-force and shelling of Ukrainian army positions are ongoing with artillery and multiple rocket launchers. The frequency of military strikes has increased.
• UN Secretary General urged DPR and LPR terrorist republics not to conduct «the elections» and to adhere to Minsk agreements.

International

• Key pricing parameters, debt restructuring, supply volumes and list of documents for the agreement to be signed, are ready for the gaz negotiations between Russia, Ukraine and the EU. The negotiations will continue on October 30th.
• Russian Council of The Federation allowed Gazprom not to pay for natural gas transit to Ukraine but to deduct it from the debts of Naftogaz.
• The US once again urged Russia to release Ukrainian pilot Savchenko, who is facing another trial, recently launched by the Investigation Committee accusing her of illegal crossing of the border. The US State Department considers this a violation of the Minsk process arrangements.

Trends

• Experts evaluate various options of the parliamentary coalition and one of them could be that the leader of the «Batkyvshyna» party Tymoshenko gets the Speaker seat.