17/03/2015 Ukraine: Daily Highlights - It has been one year since the illegal "referendum" on joining Crimea to Russia.

03/17/2015 Daily Highlights by the "Digests & Analytics - Ukraine" News Agency

Topics of the Day

Districts of Donbas controlled by terrorists will receive a special status after the withdrawal of illegal armed groups. Verkhovna Rada appealed to the UN to send peacekeeping forces to Ukraine. It has been one year since the illegal "referendum" on joining Crimea to Russia.

Key Events in Ukraine

• The deputies of the Verkhovna Rada approved the granting of a special status of local government to the certain select areas of Donetsk and Luhansk regions. The conditions for the special status are: withdrawal of all illegal armed groups from the region, restoring of control of the Ukrainian authorities over the region, and holding of snap local elections in accordance with the requirements of the Constitution under the supervision by international observers.
  The part of Donbas recognized as a temporarily occupied territory until the militants are withdrawn and the control over the state border is restored. Representatives of the Batkyvschyna Party and of the Radical Party voted against this decision stating that this decision betrays the national interests of Ukraine and violates the Constitution. Pro-government politicians have accused them of supporting the Kremlin's position, disrupting the Minsk Agreement, and escalating the conflict in Donbas.
• The Verkhovna Rada approved the appeal to the UN Security Council and the EU about the inviting peacekeeping forces to Donbas. Press Secretary of President Putin said that the question of presence of peacekeeping forces in Ukraine should be decided by negotiations between Ukraine and representatives of the Donbas’ “Republics”.
• Ukrainian Parliament authorized the admission of foreign troops from Poland and the United States to Ukraine in 2015 for conducting joint exercises.
• The Cabinet released the list of localities and territories that fully or partially are not controlled by Ukrainian authorities. The list includes the cities and villages which are on the fighting line or border closely on those areas - Avdiyivka, Peski, Dzerzhinsk, Marinka, which residents were forced to flee their homes because of the shelling and destruction, but were unable to get the status of temporary refugees.
• Fitch Ratings has lowered the long-term ratings in foreign currency and hryvnia to default level "C" of the largest energy company DTEK, owned by oligarch Akhmetov because of its poor current position and lack of funds for repayment of short-term bills.
• The Naftogaz’ directors anticipate that the price of natural gas, which will be announced by Gazprom in the upcoming tripartite negotiations with the European Commission, will not be a market one and might be used by Russia as means of pressure on Ukraine.
• The Supreme Economic Court returned the oil pipeline network built during the Soviet era to the state ownership finally. The network had been passed over to Ukraine after the collapse of the Soviet Union. Since then it was illegally operated by the Russian commercial structure.
• Deposit Guarantee Fund for individuals initiated liquidation of two middle-size banks. These are VAB Bank and CityCommerceBank.
• Finance Minister Yaresko believes that the EFF program of IMF will only stabilize the financial system. Much more assistance is needed from international donors to ensure economic growth of the country.
• Despite the declared parameters of the currency corridor in the state budget-2015 by National Bank and the Government, the official rate of hryvnia dropped again: 22.25 UAH/USD (+0.48 UAH), 23.49 UAH/EUR (+0,46 UAH), 3,58 UAH/10 RUR (+0.03 UAH).

Ukraine at War

• 3 Ukrainian soldiers were killed during attacks by militants. Despite the loss, the headquarters of the ATO considers that the situation in the region is being stabilized. Observers recorded militants and Russian armed forces concentrating on three main possible offensive directions. They hide weaponry in residental areas and on the territory of industrial facilities.
• General Staff admitted a drunken soldier as responsible for an accident in Kostyantynivka and will asist military prosecutors in the investigation. An instigator of riots among local population was detained by police, but attempts to destabilize the situation are still continuing.
• One year ago, on March 17, were announced the results of illegal “referendum” on joining Crimea to Russia, which took place under the control of armed Russian troops. The international human rights organization Amnesty International claimed in its report on the anniversary of the occupation that the Crimean authorities systematically violate human rights. There are documented cases of abductions and tortures, as well as prohibition on meetings and activity of the indigenous people - Crimean Tatars.
• Russian Command in Donbas is trying to subdue the individual groups of militants and destroy those who refuse to go under the general command of the "Army of Novorossia". On March 17 yet another uncontrollable group was defeated in Makiyivka.

Ukraine and the World

• At a meeting in Brussels, the EU foreign ministers failed to reach a decision on the early extension of sanctions against Russia, despite the efforts of the United States, Great Britain, Poland, and the Baltic States. Italy, Spain and France objected and insisted on the extension of sanctions only in case of violation of the Minsk Agreement by Russia, without taking into account the battle in Debaltseve. The decision to extend the sanctions may be postponed to June.
  According to President Obama, the extension of sanctions against Russia will lead to a sustainable ceasefire in Donbas and full implementation of the Minsk Agreements.
• PACE is preparing to present a report on the situation in Eastern Ukraine. It emphasizes that in Donbas there are neither sectarian, ethnic, nor other grounds for civil war. Speaker Zelenkova pointed out that the key role in this conflict is played by Russia, which not only delivers weapons and mercenaries to the combat zone, but also carries out political and military control of the Donbas’ "Republics", conducts propaganda and information war against Ukraine and the world community.

The Trends

• According to political analysts and experts, "special status" of certain districts of Donbas is contrary to the Constitution and violates its fundamental principles. The territory controlled by terrorists would be provided with guaranteed government funding at the expense of other regions. The law was adopted on the date specified in the ultimatum of the leaders of Donbas’ "Republics", under pressure of President Poroshenko on the Parliament fractions he controls.
• The recognition of Donbas as an occupied territory without specifying who occupies it and without imposing of martial law, is aimed at freezing the conflict, creating the conditions for embezzlement of international aid provided for rebuilding of the region, and organising the flow of goods and smuggling of weapons to the rest of Ukraine.
• After the year, since the de facto annexation of Crimea by Russia, the Ukrainian authorities have not filed action in international courts for compensation for material losses. The law on "free economic zone" is contrary to the Constitution and in practice legitimizes the joining of the peninsula to Russia, and violates international sanctions imposed on companies doing business in its territory.
• Foreign Minister Klimkin said that the EU is afraid to introduce visa-free regime with Ukraine because of the war in Donbas. At the same time, the Ukrainian authorities are trying to freeze the conflict that might derail the adoption of the EU of the decision to abolish visas.