February 02, 2016

02/01/2016 Ukraine: Daily Highlights - Sanctions against Russia will not be lifted until it fulfills the Minsk agreements

Sanctions against Russia will not be lifted until it fulfills the Minsk agreements
Sanctions against Russia will not be lifted until it fulfills the Minsk agreements

02.01.2016 Daily Highlights by the Digests & Analytics Ukraine

Topics from Media and Social Networks

  • Sanctions against Russia will not be lifted until it fulfills the Minsk agreement.
  • The Government submitted to the Parliament a report on its work in 2015.
  • Zaitseve checkpoint to the occupied territory will be closed due to shelling.
  • The OSCE cameras in the rear of the Ukrainian army transmit a signal to Donetsk.

Key Events in Ukraine

  • The Constitutional Court approved the presidential draft amendments to the Constitution in the part of the justice reform. It will be submitted for approval by the Verkhovna Rada in the first reading on Tuesday, 2 February.
  • The Antimonopoly Committee considers the case on possible conspiracy of petrol stations owners regarding the sales of gasoline and diesel fuel.
  • The official number of victims of the flu epidemic in Ukraine exceeded 170 people. In Kiev the epidemic threshold was exceeded .
  • Finance Minister Yaresko believes that tax reform and reform of the State Financial Service will be held before July 1 and she calls strengthening of fiscal discipline, reducing the budget deficit and strengthen the banking sector the priorities of the ministry .
  • Head of the NBU Gontareva said that in 2016 they expect UAH 1 billion ($ 40 million) profits from privatization, which will help to increase the inflow of direct investment into the country. According to her, the next tranche of the IMF loan is expected within a month.
  • The National Bank has significantly strengthened the official rate of the hryvnia after its significant decrease last week: 25.45 ₴/$ (-0.11 UAH), 27.70 ₴/€ (-0.21 UAH), 3.33 ₴/10 ₽ (-0.07 UAH). This change did not affect the exchange rate in exchange offices.

Ukraine at War

  • According to Headquarters of the Anti-Terrorist Operation, despite the repeated militant attacks in the surroundings of Donetsk and Horlivka, and in the Mariupol direction, there were no casualties among the Ukrainian military.
  • The head of the Donetsk regional military civilian administration announced about the closure of Zaitseve checkpoint to the occupied territory  near Horlivka and the possible closure of one more checkpoint in Mariynka due to the constant militant attacks.

Ukraine and the World

  • In Berlin took place a meeting of President Poroshenko and German Chancellor Merkel to discuss issues of cease-fire, withdrawal of Russian troops, release of all hostages, establishing of control over the state border with Russia by Ukraine , unimpeded access of the OSCE to the entire territory controlled by the militants. Merkel said that the Minsk agreements remain the basis for the settlement of the situation in the Donbass. If there is no progress in their implementation by Russia, sanctions against it will not be lifted in July. A meet in the "Normandy Four"  format at the level of the Foreign Ministers is scheduled for the next week in Paris. President Poroshenko said he is convinced that the Verkhovna Rada will adopt all the necessary laws for obtaining a visa-free regime.
  • The trial train, using a new "Silk Road" from Ukraine to China reached China in 16 days. The Ministry of Infrastructure claims that the route for the delivery of containers from China to Europe is competitive to transit through Russia. This route could also be used for deliveries of the  liquefied natural gas and oil from Turkmenistan.
  • In Russia continues trial of Ukrainian deputy Savchenko, who was captured by the militants in fight in the Lugansk region and illegally transported to Russia. Savchenko identified among her captors President’s assistant Surkov, but the court refused to call him in for questioning.
  • According to the rating of the economy freedom, prepared by the American Institute of Heritage Foundation together with The Wall Street Journal, Ukraine still has the most unfree economy in Europe with 162nd place out of 178 countries, and over the last year the situation has worsened.

The Trends


  • The Government submitted to the Parliament a report on its work in 2015. According to the Ministry of Economic Development, the main reason for the GDP fall during  last year is the situation in the Donbass.
    Anticipating the possible rearrangements in the Government, Poroshenko offered the candidatures of eight new ministers, including many notorious persons, in particular:Goncharenko - the son of a pro-Russian politician Kostusev, who was involved in the Russian propaganda was nominated  for the Minister of Health position ; the owner of the pharmaceutical company " Darnitsa " - for the position of Minister of Ecology ; it is planned to give the position of first deputy prime minister to "gray cardinal" of Petro Poroshenko Bloc Kononenko. In addition, the faction demands to dismiss interior minister Avakov, Minister of Economic Development Abromavicius and Vice Premier Kirilenko. Thus, the presidential team hopes to get a complete control over the Government.
    Mayor of Kiev Klitschko ignored the demand of the Government to dismiss his first deputy, since the law states that it is necessary to coordinate such  appointments with the President and the Cabinet. Apparently, he hopes that this appointment will be "forgotten" in the process of reformatting of the Government.
  • Former USAID employee Cohen, to fight the corruption in Ukraine, proposes to organize an international anti-corruption tribunal under the UN auspices, akin to one, organized in Guatemala, to completely remove it from the control of Ukrainian prosecutors and judiciary, and to grant it emergency powers. The functioning of such structure will require from international donors the funds in the amount of $ 200 million over five years.

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