19/03/2015 Ukraine: Daily Highlights - There was a conflict over control of Ukrtransnafta between the government and the oligarch Kolomoisky

03/19/2015 Daily Highlights  by the "Digests & Analytics - Ukraine" News Agency

Topics of the Day

There was a conflict over control of Ukrtransnafta between the government and the oligarch Kolomoisky. The public television created on the basis of the state-owned TV. The procurement procedure for medicinal drugs on the budgetary basis was changed.

Key Events of Ukraine

• The public television has been created on the basis of the state-owned TV and radio companies as a joint-stock company, 100% owned by the state.
• Verkhovna Rada adopted a government law amending the Law of Ukraine "On Joint Stock Companies" (on payment of dividends). This makes possible for Ukrainian authorities to get a control over the strategic enterprise “Ukrnafta”.
• According to the newly adopted law demobilized combatants will be sent to the military units where they were serving in an emergency bypassing the induction centres.
• The Verkhovna Rada has simplified the procurement procedure for medicinal drugs using budget funds. The main purpose of the law is to provide the transparent tender procedure procurement for medicines by specialized organizations.
• There is a conflict between the Ministry of Fuel and Energy and the group of oligarch Kolomoisky - Head of Dnipropetrovsk Regional State Administration, over the control on the Ukrtransnafta company which provides oil transportation. A newly appointed head of the Ministry was unable to enter the office of the company. Members of the parliamentary fraction Petro Poroshenko Block, the minister of energetics Demchishin, and Kolomoisky were involved in the conflict. Minister of the Interior Avakov said that the police took the company under its protection, and the conflict would be resolved in court.
• This February National Bank of Ukraine provided additional loans worth 36 billion UAH to commercial banks and the Deposit Guarantee Fund. The total debt of banks and the Fund has grown to almost 130 billion UAH.
• The National Bank’s management has no plans to nationalize the largest in Ukraine PrivatBank as it is in full compliance with regulatory requirements and the loans it was provided are ensured by floating charge. "Delta-Bank" is closed down, that was a decision made jointly with the IMF and the World Bank.
• National Bank continues to weaken the hryvnia: 23.39 UAH/USD (+0.09 UAH), 24.78 UAH/EUR, 3,81 UAH/10 RUR (+0.04 UAH).
• The outstanding Ukrainian poet and writer Lina Kostenko celebrated her 85th anniversary.

Kyiv Life

• City authorities will not cut off the natural gas, water and electricity even though citizens have debts for payments.

Ukraine at War

• The situation on the battle line in the Donbas remains extremely tense. The fighting was in Shyrokino near Maryupol, in some villages near Donetsk airport, in Schastya and Stanitsa Luhanska. Militants used tanks and mortars; this denies the fact of the withdrawal of their heavy weapons from the zone of conflict.
• Militants blew up the bridge over the Seversky Donets River in Stanitsa Luhanska.
• Commanders who were distinguished in combat operations in the Donbas received promotions.
• The provision of anti-tank missile systems of the new generation Stugna-P to the Armed Forces of Ukraine was started. These systems are analog of the American anti-tank Javelin Systems.
• The State Security Service of Ukraine reported on the preparation of major provocations with human victims by militants in Donetsk and Luhansk to lay the blame for the failure of the Minsk Agreements onto the Ukrainian authorities.
• State Border Service stated that the plan of building according with the "The Wall" project at the Ukraine-Russia border is still not ready.

Ukraine and the World

• Dutch journalists published the evidence that the Malaysia Airlines Flight 17 (MH17/MAS17) that crashed in the Donbas was hit by a missile of the Russian Buk missile system.
• State Department spokesperson Psaki said that the United States recognize the right of Ukraine to return fire in case of militants’ shelling and attacks.
• Crimean authorities are accused of massive human rights abuse, in particular, the rights of the indigenous population - Crimean Tatar. The head of the US Mission to the OSCE demanded from Russia to ensure access for international observers to the occupied territory of Crimea. The US demand to end the occupation and withdraw Russian troops from the Crimea.
• The head of the European Council Tusk announced that the EU leaders agreed on the need to extend sanctions against Russia until it fully implements the Minsk Agreements, and are ready to expand them if necessary.
• At an extraordinary private meeting of the United Nations Security Council the Minister of Foreign Affairs of Russia demanded from Ukraine to coordinate the election process in the Donbas with militants, which contradicts the Constitution of Ukraine.

The Trends

• The conflict around Ukrnafta and Ukrtransnafta along with many of the facts of pressure and criminal cases against companies belonging to the Dnipropetrovsk region governor, oligarch Kolomoisky, indicates that President Poroshenko attempts to take control on financial flows and property of Dnepropetrovsk clan.
• Experts believe that the creation of the public service television on a basis of the existing state-owned TV and radio companies is the redistribution of financial flows and media resource, and predict that the broadcast format will not change. The new structure will work for the authorities, not for the civil society, and will be financed from the budget.