04/11/2014 Ukraine: Daily Highlights - Russia accumulates its military presence in Ukraine and bordering areas.

04/11/2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency

The legislation on “Special Status of Donbass Territories” will be cancelled. National Security Council considers energy security of the country a priority. Russia accumulates its military presence in Ukraine and bordering areas.

Ukraine

• NSDC recommends the Parliament to cancel the legislation on “Special Status of Territories of Donetsk and Luhans’k Regions”. President Poroshenko ordered the development of the legislation aimed at regulation of fiscal and economic activities within these regions. Questions of defense capabilities and energy security were also discussed during the meeting.
• President Poroshenko enacted National Security Council decision about a complex of methods for strengthening the defense capability of country: amendments to the 2015 State budget with increase of military spending to 3% of GDP, signing of short term contracts with fighters from volunteer battalions, introduction of basic military skills training at schools.
• Ukraine paid 1.45 bln. USD to Russia for the previously consumed gas within the framework of the trilateral agreement between Ukraine, the EU and Russia on supplies and transit.
• Ukraine is not going to finance militants controlling parts of Donbass but will ensure delivery of humanitarian aid to population.
• Exchange rate of Ukrainian hryvnya remained practically unchanged: 12.95 UAH/USD, 16.18 UAH/EUR (-4cop), 3.09 UAH/10 RUB.

Kyiv

• State examination confirmed the compliance of the new Kiev Master Development Plan with the government and legal standards.
• Kiev repaid USD 500 million of financial liabilities on bonds issued in 2012.
• “The Slavic Marche” of pro-Russian organizations ended up with proclamations of the “Glory to Ukraine” motto and detention of Russian “Life News” station journalists, which entered the country without the accreditation.

War in Ukraine

• Militants continuously fire on OSCE drones, which are controlling the cease-fire within the conflict zone in Donbass.
• As declared by the President Poroshenko, newly formed military units will be capable of stopping advance of Russian troops and LPR and DPR militants within major routes of potential offensive.
• Dutch experts discovered new remains and personal items of terrorist attack victims on the crash site of MH17 flight.
• Shelling of Ukrainian army positions is ongoing. Another Ukrainian military was killed.
• Flow of regular Russian troops to the territory controlled by militants is ongoing, masked by insignia of “DPR and LPR army”.

International

• Questions of military collaboration and preparation of Vice President Bayden visit to Ukraine were discussed during telephone talks between the Secretary of State Kerry and Ukrainian President Poroshenko.
• The US and NATO are worried about increase of Russian troops numbers on Ukrainian territory and within the border areas, as well as about reinforcement of Donbass terrorists with troops, armor and ammunition.
• Slovakian gas company Eustream announced a search for an extra gas volume supplier for the reverse scheme to Ukraine as the pipeline is not currently fully loaded.
• Oil prices went down sharply on the World markets.
• As announced by German Chancellor Merkel, sanctions against Russia are not going to be cancelled during the summit of the EU Foreign Affairs Ministers on November 17th.

Trends

• The international community is making great efforts to prevent Russian aggression in Ukraine, but Russia continues to build up its striking force.
• The issue of energy security, in addition to defense against external aggression became the key to the survival of Ukraine.