September 03, 2014

02.09.2014 Ukraine: Daily Highlights - Official position of Naftoaz in the negotiations with Gazprom has been announced while Russian troops invaded Ukraine

Deputy head of presidential administration Shymkiv informed, that more than 400 officials of the administration will be fired, as well as 22 Presidential advisory bodies  will be cut

02.09.2014 Daily Highlights by “Digests & Analytics Ukraine” News Agency


Ukrainian Army is engaged in heavy positional fights with terrorists advancing in Donbass, which are supported by Russian regular army. Ukrainian hryvnya has strengthened after a positive decision from IMF. Ukraine is preparing for tough negotiations with Gazprom and looking forward for decisive and real military support from Europe and NATO during the summits planned this week.

Ukraine

  • National commission for communications has increased tariffs for land lines starting in September in cities by 14%, in rural areas - by 27%.
  • Joint Ukraine-NATO exercises «Rapid Trident» will be conducted in Ukraine during 16-26 of September, with participation of 200 US and 1 100 EU troops.
  • President Poroshenko signed the law on simplified military conscription in case of challenge to national security during mobilization.
  • Deputy head of presidential administration Shymkiv informed, that more than 400 officials of the administration will be fired, as well as 22 Presidential advisory bodies will be cut. Electronic documentation and governance is planned to be introduced by the end of the year. Presidential cadre reserve, created by President Yanukovych, have been liquidated.
  • Official position of Naftoaz in the negotiations with Gazprom has been announced. It includes transition to the European prices, excluding price of transit through the territory of Ukraine, payment of relevant debts, claimed in Stockholm Arbitrage, change of transit conditions and liquidation of Gazprom monopoly for supplies to Ukraine.
  • As the session of Verkhovna Rada opened, deputies adopted a law on simplified customs clearance and tax exemptions for military goods transported to Ukraine. However, deputies have failed to approve budget allocation for the coming elections, as well as the law on counteraction of the informational aggression of foreign states. Some adopted law amendments are simplifying charity contributions and activities for the army needs. Agreement on  associative membership in the European Association of the Nuclear Research (CERN) have been ratified. Moratorium on enforcing collection of payments for accommodations and utilities for subjects living in the combat areas have been introduced by another law.
  • National Bank continues to strengthen Hryvnya: 13.00 UAH/USD (+11 cop), 17.08 UAH/EUR (+21 cop), 3.49 UAH/10RUR (+6 cop).

Kyiv

  • Kyiv is getting ready to build new commuter bus stations at the edges of the city aiming at radical reduction of city traffic. The plan takes into account the proximity of metro stations and public transportation, and is linking all rural routes to these stations. Beyond traffic reduction, these measures will increase city budget revenues.

War in Ukraine

  • Adviser to the Minister of Internal Affairs Gerashenko has informed that National Guards have received cannons and mortars, while special battalions and special battalions - heavy machine guns and grenade launchers. Heavy machinery and armored vehicles require intensive repairs after being on conservation for years.
    Government has decided to immediately redeem all of the heavy equipment from Ukroboronprom and send it to the troops.
  • Militants continue to terrorize Luhans’k and Donets’k by shelling residential areas and civilian infrastructure with artillery and mortars. Popasnaya and Komsomols’k have been also shelled. Terrorists seized city police stations in Dokuchaivs’k and Telmanovo. Second line of fortifications being build around Mariupil. During the day, Ukrainian military expelled attacks on Vasylivka, Komsomols’k, Stara Laspa and Rozdolne. Russian army is shelling Ukrainian territory of Luhans’k and Donets’k region with multiple rocket launchers “Smerch” from Russian territory across the border.
  • Ukraine will be cutting electricity supply to Crimea every day for six hours.

International

  • Pentagon representative General Kirby stated during a briefing that around 10 000 Russian troops  have been already concentrated on northern border of Ukraine in full readiness for invasion. US is getting ready to put the question of re-emerged threat from Russia, which has invaded continental Ukraine, during the oncoming NATO summit.
  • IMF projects that Ukraine will require another 19 bln. USD in case the conflict in Ukraine develops further. Two tranches of credits amounting to 2.7 bln. USD, planned to be provided to Ukraine in December, most probably are going to be merged. Forecast of industrial production decline in Ukraine decreased to 7.25%.
  • Ukraine and Russia haven’t agreed on participation of international organizations, processes and means of humanitarian aid delivery from Russia. Ukraine is firm onits conditions for humanitarian aid provisioning.

Trends


  • As per information from trilateral talks in Minsk, publicized by OSCE, all parties agreed to continue consultations, that are as well attended by DPR and LPR terrorist organizations, which have given their ultimatums to Ukrainian authorities. This could be a sign of attempts to legalize Russian project of annexion of another part of Ukraine, with the help of OSCE. Former President Leonid Kuchma is taking part in the negotiations from Ukrainian side.

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