12/01/2014 Ukraine: Daily Highlights - Fierce fighting continues in the Donetsk airport.

12/01/2014 Daily Highlights by "Digests and Analytics - Ukraine" News Agency

Topics of the day 

Negotiations on forming a new Cabinet are on the finishing line. Fierce fighting continues in the Donetsk airport. The new head of the European Parliament Tusk expressed support for Ukraine.

Ukraine

• President Poroshenko has abolished Constituent Assembly created by ex-president Yanukowich.
• Foreigners, whom "Block of Petro Poroshenko" intends to invite to work in the government, have applied for Ukrainian citizenship.
• The Cabinet of Ministers has approved terms for the 3G communication frequency tender.
• Prosecutor General's Office announced a suspicion to former MPs Kalyetnik and Oleinik for abuse of power, abuse of office and fraud during the vote on the "dictatorship laws" on January 16th.
• A court ordered Prosecutor General to open a criminal case against the head of the National Bank Gontareva, whose actions during the NBU operations in foreign currency exchange resulted in significant losses to the state.
• The Ministry of Finance has reported that during the period from February to November of 2014, the amount of issued loans came to about $9 billion.
• National Bank revised the rules for the formation of reserves on deposits in foreign currency and hryvnia and extended by three months the mandatory sale of 75% of foreign exchange earnings by exporters.
• The official hryvnia exchange rate fell slightly and is 15.06 UAH / $ (+0.09 UAH), UAH 18.79 / € (+0,11 UAH), UAH 3.05 / 10 rubles. (-0.09 UAH).

Kyiv

• Due to the shortage of electricity in the national power system, new planned power outage schedule is in effect for industrial enterprises in Kiev starting December 1st.

War in Ukraine

• Despite the claims of the media, fierce fighting in the Donetsk airport and Avdiyivka is continuing. Defenders repelled all of the attacks by Russian troops and DPR militants. Militants use residential apartment buildings as a cover during shelling of the airport. Terrorist activity has intensified after the arrival of another "humanitarian" convoy from Russia, which brought among other things military and communication equipment, and fuel for armored vehicles. Russian troops presence is building up near Stanytsya Luganska, Debaltsevo, Donetsk. During the day, the positions of Ukrainian troops were attacked more than 50 times.
• The OSCE announced an agreement between LPR militants and Ukrainian troops for a ceasefire beginning on December 5th, and the pullback of heavy military equipment from the immediate front line starting on December 6th.
• NATO detects a significant increase in the number of Russian troops accumulating at Ukrainian border, as well as transfer of advanced military equipment and troops into Ukraine. Russian military activity in Europe has also increased.

International

• The head of Gazprom Miller announced the closure of the South Stream project due to the Bulgaria’s and the EU’s political positions. However, the pipeline to Turkey under the Black Sea will be expanded and then extended to Greece.
• The Rissian Federation and Turkey have reached an agreement on the construction of a nuclear power plant, which would belong to Russia. The construction is scheduled to start in March the next year.
• Norwegian service company terminated a contract with Rosneft on a lease of vessels for deep water drilling in the Arctic Shelf due to sanctions by the EU.
• Russia is developing a scenario for sustaining their economy taking into account the medium-term fall in oil prices to $ 60 a barrel due to sanctions imposed by the United States and EU.
• NATO has announced activation of trust funds to support Ukraine. Their work will focus on improving of logistics in the armed forces, improving communications and on fighting of cybercrime.
• Director of IMF Lagarde said in an interview that falling oil prices will give a boost to the growth of advanced economies and threaten the growth of the Russian economy.
• Chairman of the Council of Europe Tusk, who succeeded Van Rompuy, said that the EU and the US are working on a package of financial support for Ukraine and also are preparing new sanctions against Russia.
• German Chancellor Merkel is satisfied with the success of the Ukrainian parliament in creating a coalition, and expects profound and rapid pro-European reforms from the new cabinet.
• Democratic Parties, which won elections in Moldova, have begun to form a coalition.

Trends

• Civil activists accuse all branches of power in Ukraine of inactivity and of stalling investigations of crimes against Maidan.
• Russia has switched to sabotage war tactics in Ukraine and continues to attack Donetsk airport - a key stronghold of the defense in the Donbass, the capture of which can be used to justify the use of aircraft by terrorists.