05/03/2015 Ukraine: Daily Highlights - Ukraine withdraws heavy weapons from the front line

05/03/2015 Daily Highlights by the "Digests & Analytics - Ukraine" News Agency

Topics of the day

Ukraine withdraws heavy weapons from the front line. Verkhovna Rada has increased the size of Ukrainian Armed Forces to 250 thousand servicemen. Foreign exchange reserves fell to the lowest 11-year level.

Key Events of Ukraine

• President Poroshenko created Luhansk and Donetsk regional civil-military administrations as well as a number of district and city administrations.
• Verkhovna Rada adopted the increase in the size of the Armed Forces to 250 thousand servicemen.
• The Ukraine's foreign exchange reserves fell by 12% to $ 5.6 billion. In February only, some $ 800 million was spent on foreign exchange interventions and public debt service.
• The average salary in Ukraine appears to be the lowest in Europe and one of the lowest in the world as a result of the recent devaluation of hryvnia.
• The NBU increased the official hryvnia FX rate once again: 23.09 UAH/USD (-0.68 UAH), 25.69 UAH/EUR (-0,85 UAH), 3.73 UAH/10 RUR (-0.08 UAH).

Kyiv Life

• Despite mayor Klitschko’ promises, the price of bread in the capital is expected to rise by another 30% starting March 12.

Ukraine at War

• The Ukrainian troops came under fire from insurgents a few dozen times. The largest number of artillery attacks reported in the Donetsk area. The Ukrainian side withdrew their MLRS "Grad" and ACS "Acacia" from the 35 km combat zone under monitoring  from the OSCE.
• Despite the increasing accumulation of assault militant groups, Ukraine continues the withdrawal of its troops from the front line.
• Since the beginning of the year, Russia supplied the militants with more than a thousand trucks worth of help.  Two more truck convoys are being in preparation to cross into Ukraine.

Ukraine and the World

• The EU Council extended the sanctions against former President Yanukovych and his entourage, but reduced the list of persons to whom the sanctions have been applied.
• The Ukrainian Foreign Ministry refuted media reports about termination of the hunger strike by the Ukrainian deputy Savchenko, who is  illegally kept in prison by the Russian authorities.
• The NATO Secretary General Stoltenberg said that Russia has significantly increased its support for DNR and LNR militants by supplying heavy equipment and  mercenaries. At the moment, the ceasefire agreement, in general, is observed by both sides, but the truce appears to be very fragile. The Alliance supports sanctions against Russia - it should answer for the violation of international law and the use of military force to redraw borders.
• Poland, following Lithuania, can start lethal weapons deliveries to Ukraine, however Ukraine lacks necessary funds for purchasing them.
• The US gave $ 23 million for the development of the Russian-language broadcasting service to fight the Russian propaganda.
• Russia opposes the deployment of the peacekeeping force on the territory of Ukraine.

The Trends

• Despite the assurances from the commander of the General Staff Muzhenko that the Debaltseve railway junction has been completely destroyed, the rebels were able to restore it within a week and it is now being used for trafficing of weapons and transportation of coal.
• The appointment by the President Poroshenko of military and civilian administrations without martial law imposed in the country is an abuse of presidential power.