10/03/2015 Ukraine: Daily Highlights - The EU Council approved the decision to grant Ukraine macro-financial aid

03/10/2015 Daily Highlights by the "Digests & Analytics - Ukraine" News Agency

Topics of the Day

The EU Council approved the decision to grant Ukraine macro-financial aid. The NBU continues to raise the official exchange rate of hryvnia to the rate agreed in memorandum with the IMF. Observers claim that the militants in Donbass are ready for offensive.

Key Events of Ukraine

• Speaker of the Verkhovna Rada Groisman does not know about the plans to introduce changes to government after obtaining of the IMF loan and is confident in strength of the parliament coalition. In his oppinion, in order to fulfill Paragraph 9 of the Minsk Agreement Ukrainian authorities should conduct negotiations with the local Donbass authorities legitimately elected in 2010.
• President Poroshenko vetoed the law on the procedures for national regulatory commissions to coordinate tariffs for gas and electricity with the Cabinet of Ministers.
• The court decided to arrest the former chairman of the Verkhovna Rada counting commission, a  member of the Communist Party, Gordienko for forgery during voting for the Yanukovych "dictatorial laws" on January 16, 2014.
• Following the suicide of the former chairman of the State Property Fund Chechetov, the former director of the "Lux" company and other structures owned by oligarch Akhmetov, Melnyk also commited suicide.
• Odious journalist Busina quit the position of the editor of "Segodnya" newspaper (“Today”).
• The cost of industrial products in Ukraine increased by 41% compared to February 2014.
• The NBU Council criticized the monetary-credit policy of the bank headed by Gontareva. Current policy does not ensured stability of the national currency and there are mistakes in commercial banks refinancing and liquidity management. In order to reduce the budget deficit, the Council recommends the Cabinet of Ministers to audit Naftogaz.
• The National Bank continues to show the IMF that it is able to cope with the hryvnia exchange rate: 21.74 UAH/USD (-1.15 UAH), 23.60 UAH/EUR (-1,76 UAH), 3.62 UAH/10 RUR (-0.08 UAH).

Kyiv Life

• Kyiv authorities ordered the repair and modernization of 50 metro cars for the amount of UAH 1 bln (slightly less than $1 million per unit).

Ukraine at War

• Avdiyivka, Peski are still under militant shelling, militants continue to attack Shirokine and Gorlivka area. According to officials, nine Ukrainian soldiers are injured today . Observers reported about the transfer of heavy equipment to Debaltseve by railway. Russian contractors and militants are fully prepared for offensive in five directions in the Donbass area. They conduct intensive reconnaissance using drones.
• Ukraine declared about the implementation of commitments on withdrawal of heavy weapons in accordance with the Minsk Agreement. Command asserts that the army is able to repel the attack of the militants.
• LPR militants prohibited OSCE observers to monitor the border between Ukraine and Russia and they do not allow them to inspect the basing locations of withdrawn heavy weaponry.

Ukraine and the World

• European Parliament Committee of Foreign Affairs approved the allocation of macro-financial aid for Ukraine in amount of €1,8 billion, the greater part of it will be granted during the second half of 2015.
• The US Dollar exchange rate reached its 11-year maximum against Euro (1,067 $ / €).
• Lawyers of Ukrainian deputy Savchenko presented in Russian court video evidence prooving her innocence.
• NATO will be placing two Eastern European Command Centers in the capital of Romania - Bucharest.
• Italian Supreme Court freed the former president, the billionaire Berlusconi, from a charge on child sexual abuse.
• The US State Department claims that Russia continues to build-up forces on the border with Ukraine and to transfer the weapons to the Donets area. The US Department of Defense considers large-scale attack of Russia in the Donbass possible.
• German Foreign Minister Steinmeier is skeptical about the prospects to quickly end the conflict in Ukraine and is confident that the EU should provide substantial financial aid to Ukraine.
• From March 11, 2015 Russia fully terminates the Treaty on Conventional Armed Forces in Europe , as, in its opinion, NATO violates it with its expansion eastwards.

The Trends

• According to Zbigniew Brzezinski, the former adviser to the US President for National Security, in order to reduce the level of confrontation in the Donbass area US should give Russia guarantees that Ukraine will not join NATO.