Ukraine: September, 21-27, 2015 - Main Events of the Week

Digest of the main events of the week: September, 21-27, 2015 by the analytics agency "Digests & Analytics Ukraine"

Ukraine stopped servicing its old state obligations and declared a technical default – Militants’ representatives at the Minsk talks issued an ultimatum to Ukraine – A "winter gas package" for Ukraine has been signed – NATO keeps its doors open for Ukraine

Key Events in Ukraine

• Klitschko was once again nominated candidate for the Mayor of Kyiv by Petro Poroshenko Bloc, and Samopomich nominated its leader Sadovyi for the Mayor of Lviv.
• Attorney General Shokin signed a decree on the establishment of an anti-corruption prosecutor's office within the GPO as an independent department.
• Interior Ministry raided the apartments of the representatives of Svoboda party suspected of the involvement in the events outside of the Verkhovna Rada building on August 31, when four soldiers of the National Guard were killed.
• President Poroshenko forwarded the petition on the right to carry firearms to the Constitutional Commission, saying he had no authority over the laws adopted by the Parliament.
• Ministry of Economic Development plans to establish a holding company to include the 12 largest strategic state-owned enterprises and banks, including Nadra Ukrainy, Naftogaz, Oschadbank, and Ukreximbank.
• State Property Fund plans to accelerate the privatization of energy companies  by selling large stakes in energy companies in October and November, and a controlling stake in the Odessa Port Plant and Sumykhimprom JSC in December.
• Energy Minister Demchyshyn announed the government would soon submit to the Parliament two fundamental laws, significantly changing the rules in the electricity and gas market.
• The World Bank changed its forecast of the GDP drop in Ukraine in 2015 from 7.5% to 12%.
• Ukraine stopped servicing its old state obligations and started the restructuring process agreed with the IMF, which is in fact a technical default.
• NBU Head Hontareva announced the receipt by Ukraine of the next IMF tranche in mid-November. She also said that all foreign exchange restrictions are planned to be lifted by mid-2016. Current foreign exchange reserves of the National Bank exceed $13 billion.
• Deposit Guarantee Fund initiated bankruptsy proceedings in respect of Finansy i Kredit bank, one of the top ten Ukrainian banks, and urged the National Bank to start the liquidation of Delta Bank.
• Privatbank has paid the coupon on restructured liabilities.

Ukraine at War

• President Poroshenko signed into force a new Military Doctrine of Ukraine.
• The ceasefire in Donbas was interrupted by provocative fire opened by militants from small arms. The activity of the militants’ subversive groups has intensified. Ukrainian military keep getting killed and injured due to landmine explosions.
• Representatives of the militants at Minsk talks issued an ultimatum, demanding the recognition of their "elections" scheduled for October 18 and November 1, the amnesty, and the amendments to the Constitution.
• Crimean Tatars continue to block highways leading to Crimea.
• Militants continue blocking the aid transferred by international charities to residents of Donbas.

Ukraine and the World

• NATO Secretary General Stoltenberg paid an official visit to Ukraine. Ukraine and NATO signed an agreement on the status of the NATO representation. Poroshenko said once again that Ukraine was not ready for NATO membership, but NATO Secretary General said that Ukraine had all chances of joining following the modernization of its army.
• The talks on gas between Russia, Ukraine and the EU In Brussels resulted in signing an agreement on the "winter package" for Ukraine at $232 per 1000 m3 and the supplies of the Russian gas to Europe till March 2016. Energy Minister Demchyshyn said that Ukraine received $500 million needed to purchase 2 billion m3 of natural gas from Russia.
• President Poroshenko arrived at the UN General Assembly, where he met with German Chancellor Merkel and British Prime Minister Cameron. Ukraine was promised military and technical assistance. Preparations for the meeting of the heads of states of the "Normandy Four" are underway.