27/02/2015 Ukraine: Daily Highlights -Yatsenyuk reported on a year-long premiership in "kamikaze government"

27/02/2015 Daily Highlights by "Digests & Analytics - Ukraine" News Agency

Topics of the day

Yatsenyuk reported on a year-long premiership in "kamikaze government". IMF loans will be spent to cover public debt. Russia is preparing a new offensive in  Donbass. A prominent Russian opposition politician Boris Nemtsov murdered in Moscow.

Key Events of Ukraine

• At the concluding press conference the Prime Minister Yatsenyuk said that the rate of 21.7 UAH/$ and the annual inflation rate of 26% stated in the 2015 budget are too optimistic and may be revised. To stabilize the situation on the financial market it is necessary to restore confidence in the institution of the National Bank. Money allocated by the IMF and other donors will not be spent on salaries, pensions and military spending, but rather appropriated for payment on external obligations and on prevention of a default. Yatsenyuk believes that the conflict in Donbass could last for several years. According to an online survey, the policies of the Yatsenyuk’s government have a negative approval rating by 80% of respondents.
• The Government approved the text of the memorandum with the IMF.
• The Dnepropetrovsk court banned the Ministry of Infrastructure to hold contests for the posts of heads of "Ukrzaliznytsia", the International airports "Lviv" and "Borispol" based on the lawsuit filed by one of the applicants.
• The Minister of Agrarian Policy Pavlenko claims that the the spring sowing campaign needs 11 billion UAH in financing, and, in addition, 1.4 billion UAH in compensation for interest on loans.
• Despite the warm weather in February, the government-set limits for gas consumption are exceeded by 11%.
• No ruling on the resignation of the head of the NBU Gontareva by the Parliament Coalition Council as it failed to propose a new candidate for the position.
• The head of the NBU Gontareva reported that since the start of the year, the Ukrainians withdrew more than 17 billion UAH from deposits, the last year outflow was estimated at 135 billion UAH. In her opinion, the outflow of deposits is associated with failure of Minsk Agreement and military defeats.
• Representatives of the IMF in Ukraine said that the Fund is ready to help the NBU to stabilize the situation on the currency market if Ukrainian authorities execute on the preliminary agreed set of complex measures.
• The National Bank has strengthened the official rate of hryvnia: 27.76 UAH/USD (-2.25 UAH), 31.42 UAH/EUR (-2,62 UAH), 4.57 UAH/10 RUR (-0.22 UAH).

Kyiv Life

• Due to financial problems the construction project of a motorway around the capital appears to be frozen. Similarly, the construction of "Air Express" connecting Kiev with the International airport "Borispol" can be terminated as well.

Ukraine at War

• Three Ukrainian soldiers were killed at the checkpoint near Donetsk airport as a result of tank shelling from the territory occupied by rebels.  The Tripartite Liaison Group has initiated an investigation into the incident.
  Militants disguise active rotation and troop redeployment as a removal of heavy equipment, which in reality is being hidden in the residential sector.
  Russia continues massive transfer of heavy equipment and mercenaries to Ukraine through uncontrolled land borders. According to the group "Information Resistance" Russia amassed more than 63 thousand troops, 400 tanks, 300 aircraft, more than 500 artillery systems and MLRS on the border with Ukraine.
• The head of the Luhansk Regional State Administration Moskal said that the terrorist Republic LNR completely switched to electricity deliveries from Russia and is disconnected from the Ukrainian electricity grid.

Ukraine and the World

• A prominent Russian opposition leader Boris Nemtsov was assassinated in the center of Moscow on Friday night. Experts and observers believe that the murder is politically motivated and maybe connected with Nemtsov’s intention to publish a report on Russia's participation in the Donbass hostilities.
• In New York, at the request of Germany and France,  an emergency meeting of the UN Security Council is conveying to discuss the situation in the Donbass.
• According to the OSCE, the likelihood of conflict continuation in the eastern Ukraine remains high. The head of the monitoring mission Alakan said  that the militant offensive on Debaltseve violated Minsk Agreement immediately after it was signed off. According to the representative of Ukraine to the United Nations Sergeeva, militants disguise their regrouping in order to start offensive on Mariupol for the withdrawal of heavy weapons.
• According to the German Foreign Minister Steinmeier the full resolution of the conflict in Ukraine may take decades.

The Trends

• The Ministry of Foreign Affairs of the United Arab Emirates stated that it does not intend to start deliveries of lethal weapons to Ukraine, refuting the earlier statement by President Poroshenko on contracts to supply the arms. Experts believe that loud statements made in the arms trade can lead to breaking contracts and breaching agreements with third parties.