17/12/2014 Ukraine: Daily Highlights - NSDC Secretary Turchynov believes that the situation in the Donbass is far from a settlement

17/12/2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency

Topics of the day

NSDC Secretary Turchynov believes that the situation in the Donbass is far from a settlement and Russia could continue its aggression. Hryvnia (UAH) exchange rate on the interbank market continues to fall. Yet another ceasefire talks in Minsk between Russia, Ukraine, OCSE and terrorist rupublics’ representatives are scheduled for December, 21th.

Important Events In Ukraine

• President Poroshenko said the Anti-Corruption Bureau of Ukraine will be established on January 14th.
• The Cabinet of Ministers initiates the denunciation of the agreement on the avoidance of double taxation with Cyprus and is preparing a new tax law with the tax rates in line with such rates in EU.
• The deputies of the Verkhovna Rada recommend to combine the investigation of all crimes against activists of the Maydan in one criminal case as for creation of an organized criminal group.
• NSDC Secretary Turchynov said Russia may launch a full-scale war in the Donbass at any time. Martial law could be introduced in Ukraine if necessary. Partial rotation of troops and several waves of mobilization have been planned.
• The Ministry of Defense introduces two new types of military reserve. These are territorial and community reserves based on military recruitment offices. Swiss model has been choosen as a base for universal military training.
• Ukraine and Poland signed an agreement on the integration of its gas transport systems. It makes possible to increase the reverse supply of natural gas to Ukraine and use Ukrainian underground storage facilities to store European gas.
• Yet another sharp increase of interbank exchange rate of dollar up to 16.15-16.55 UAH/USD was recorded. FX rate used for commercial transactions is getting close to 20 UAH/USD. National Bank set the official hryvnia FX rate against major currencies: 15.78 UAH /USD (+0.01 UAH), 19.78 UAH/EUR (+0,16 UAH), 2.58 UAH/ 10 RUR. (-0.12 UAH). Additonal 4.5 billion UAH have been given by NBU to the commercial banks to support liquidity.
• The petrol prices at the Ukrainian service stations are not falling due to the devaluation of the hryvnia despite low oil prices on markets.

Kyiv

• Employees of the municipal enterprise "Kyivpastrans" went on strike in front of the Cabinet of Ministers to demand payment of salary arrears. Police pushed protesters, who blocked the roadway, aside.

War in Ukraine

• Ceasefire negotiations betveen Russia, Ukraine, OCSE and representatives of terrorist Donetsk and Luhansk "Republics" will be held in Minsk on December 21th.
• Ukrainian army positions had been shelled by militants more than 10 times. Donets’k airport and Stanitsa Luhanska were attacked. The Russian army is regrouping and moving air defense equipment, armor and artillery systems to the line of fighting.
• Security Services of Ukraine apprehended a lot of sabotage groups on Ukrainian territory.
• Luhans’k “People Republic” leaders plan to disable Ukrainian mobile operators service and introduce coverage by Russian operators on the territory of Luhans’k Region.
• Ukrainian army will get the latest US anti-cannon radar systems at the beginning of January 2015.
• UN opened an office in Donetsk to help civilians in the conflict zone.
• Terrorists confessed that humanitarian aid, arriving into the Donbass, is being stolen.

Ukraine and the World

• The US Department of State denied the signing of the bill "Ukraine Support Act" by President Obama, as spokesman Mrs. Psaki reported at a briefing.
• USA decided to restore diplomatic relations with Cuba and normalize commercial and banking links. President Obama has suggested the Congress to cancel the sanctions against Cuba.
• Assistant Secretary of State Mrs. Nuland said that United States handed over all the information at their disposal, including secret one, to the Netherlands Prosecutor's Office and to ICAO, which investigate the crash of the flight MH-17 shot down over the Eastern Ukraine in July of 2014.
• Russia’s transfer of nuclear weapons and other arms to the Crimea will have appropriate response by the United States.
• US ready to increase financial assistance to Ukraine through the World Bank and the IMF in response to the implementation of reforms, liberalization of the economy and strengthening the fight against corruption.
• President Poroshenko’s visit to Brussels to attend the session of the European Parliament was cancelled because the EU officials consider the time of visit as inappropriate.
• British Prime Minister Cameron said that the fall in oil prices and sanctions against Russia led to a sharp deterioration in the economic situation in the country, which prevents if from remaining a member of the global financial system. He also called for tougher sanctions against Russia.
• UN Secretary General Ban Ki-moon said that the freezing of the conflict in the Donbass will lead to serious consequences at regional and global levels, and called on the parties to unconditionally implement Minsk agreements.
• The European Parliament adopted a resolution calling for the recognition of the independence of Palestine and for continuations of the peace negotiations.
• Russian experts state the beginning of a deep stagnation in the Russian economy. The stagnation will increase in 2015 and will lead to higher prices, hyper-inflation, drops in consumption and investment in basic industries.

Trends

• Civil society activists believe that the Prosecutor General's Office does not investigate the majority of crimes against Ukrainian high-ranking officials included on EU sanctions lists. Not a single criminal case was sent to courts by now.
• According to the head of the presidential administration Lozhkin, there should be no volunteer batallions "funded by the oligarchs" in Ukraine, and they should be subordinated to the regular army command.