18/03/2015 Ukraine: Daily Highlights - The Ministry of Health is trying to tackle corruption in the pharmaceutical business

18/03/2015 Daily Highlights by the "Digests & Analytics - Ukraine" News Agency

Topics of the Day

The situation in the conflict zone of Donbas remains tense. Moscow celebrated the annexation of Crimea and signed an agreement on the integration of South Ossetia. The Ministry of Health is trying to tackle corruption in the pharmaceutical business. Demobilization of troops which served a year begins.

Key Events of Ukraine

• President Poroshenko signed the law on a special order of local self-government for the Donbas’ certain select areas.
• The Cabinet created the National Anti-Corruption Agency which is in charge of checking state officials’ income declarations.
• A criminal case launched against the prosecutor of Kiev Yuldashev over malpractice and bribery.
• Defense Minister Poltorak said that the number of Ukrainian armed forces will reach 250 thousand people as a result of the mobilization.
• The demobilization of military personnel who have served a year started on March 18.
• Tariffs for hot and cold water and central heating in Ukraine will grow again from April 1.
• Cabinet cancelled the reregistration of pharmaceuticals registered in the US, EU and Australia, and simplified the system of initial evaluation of medical products. The Ministry of Health has decided to move away from the policy of price control on medicines and introduce a transparent procedure for the procurement of drugs by medical institutions.
• NBU again significantly lowered the hryvnia against major currencies: 23.30 UAH/USD (+1.05 UAH), 24.78 UAH /EUR (+1,29 UAH) 3.77 UAH / 10 RUR (+0 19 UAH). National Bank’s leaders said that the policy of containment of the course proved to be ineffective, but the regulator has enough means to respond flexibly to the foreign exchange market.

Ukraine at War

• The ATO Headquarters states about the sharp rise in attacks on the Ukrainian Army’s positions by militants. In particular, Avdiyivka, Peski were shelled by the heavy equipment.
• OSCE does not have access to the “DPR” and “LPR” militants’ home stations where their war equipment is based; therefore it believes that the process of withdrawal of heavy weapons has not been completed.
• The instigators of riots were arrested in Konstantynivka. The riots were a result of a hitting a women with children by an armoured vehicle with a drunk driver.   
• Leaders of the Donbas’ "Republics" announced the temporary suspension of the pensions and social security benefits payments. Products and essential goods in the shops continue to rise in price and are more expensive than in the rest of Ukraine.
• The State Security Service of Ukraine announced the launch of the test mode of the digital access badge to the area controlled by the “DPR” and “LPR” militants from March 20.
• Canada delivered 60 infrared thermal imaging cameras to the Ukrainian Army for free, another 200 units will be delivered in the near future.

Ukraine and the World

• The press service of the White House announced that President Barack Obama and German Chancellor Merkel decided not to weaken sanctions against Russia till the full implementation of the Minsk Agreement.
• US Vice President Biden informed President Poroshenko that the training of the 780 National Guard service members by American instructors will begin in the nearest time.
• Russia refused to participate in a meeting of the UN Security Council on the Crimea problem, which is convened on the initiative of Lithuania.
• NATO Secretary General Stoltenberg believes that the signed by Russia on March 18 "framework agreement" on the integration of South Ossetia violated the sovereignty and territorial integrity of Georgia.
• In Moscow, the Russian leadership held celebrations to mark the anniversary of the annexation of Crimea.
• In Frankfurt more than 200 protesters and police were harmed during the riots caused by the opening of a new headquarters of the European Central Bank in the city.

The Trends

• Experts are sceptical about the creation of another anti-corruption organ within the Cabinet's structure, that might duplicate the functions of the Anti-Corruption Bureau, despite the statement of the Minister of Justice on the separation of their powers.
• The sharp rise in utility tariffs while reducing business activity and freezing salaries, pensions and social payments, will inevitably lead to mass default in payments of public utilities.