12/09/2014 Ukraine: Daily Highlights - Implementation of the economic part of the association agreement with the EU on the free trade zone is being delayed till 31 of December 2015, as per demand from Russia

12/09/2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency

Russia uses cease-fire to concentrate and rotate its troops in Donbass. Second “humanitarian convoy”, that haven't passed neither Ukrainian customs, nor is under control of international organizations, is an instrument of aggression. Massive Russian diplomatic attack led to breakdown of the Ukraine - EU free-trade zone introduction time schedule.

Ukraine

• Implementation of the economic part of the association agreement with the EU on the free-trade zone is being delayed untill 31st of December, 2015, as per demand from Russia. The association agreement itself will come in force on 16th of September after simultaneous ratification by Ukrainian and European parliaments. As consolatory measure, the European Commission will extend preferences for Ukrainian suppliers for the same period of time but access of European goods to Ukraine will be subject to customs taxes. Ukrainian authorities explained this development by the fact that Russian side have been threatening with serious complications of trade between Russia and Ukraine, stressed by the Minister of Economic Development of Russia Ulyukayev. Deputy Minister of Foreign Affairs of Ukraine Lubkivskiy has resigned as the result of the decision taken.
• Prime Minister Yatsenyuk said, that Ukraine have decreased gas consumption by 30%. Additional 5 bln. cubic meters are still needed and could be received only from Europe.
• Ukrainian Government allocated first 100 mln. UAH to build fortifications on the border with Russia within «the wall» project.
• Head of the Central Elections Committee Ohendovsky stressed, that elections in Donbass could be conducted only in 13 out of 33 election districts.
• Kharkiv court released from detention, under personal obligation, a known anti-maidan activist «topaz». Minister of Internal Affairs Avakov stressed, that this decision of the court is criminal. Previously, the Prosecutors Office closed the case against  accused of separatism ex-Governor Dobkin due to lack fo evidence.
• Official exchange rate established by the NBU remained practically unchanged: 12.95 UAH/USD (+2 cop), 16.74 UAH/EUR (+3 cop), 3.46 UAH/10 RUB (+3 cop).
• President Poroshenko spoke at the annual Yalta European Strategy (YES) Forum, which for the first time is being held outside of Crimea. He outlined the main points of domestic and foreign policy, which the leadership of Ukraine is planning to implement in the short term.

War in Ukraine

• 35 trucks of the «second humanitarian convoy» from Russia crossed Ukrainian border without Ukrainian customs clearance and without supervision from the International Red Cross.
• Situation in Donets’k remains very tense. Three city districts have been severely damaged as the result of artillery shelling by terrorists. An attack on the international airport, controlled by Ukrainian troops, started just after dark.
• Security Service of Ukraine is detaining numerous terrorist groups but the remaining conduct active subversive actions. 3 man wounded as the result of Ukrainian military column shelling near Mariupol.
• As stated by experts, withdrawal of Russian troops from Ukraine actually is noting else but rotation and replacement of damaged hardware. On top of that, newest arms being provided to the illegal military groups and training camps for subversive groups being organized by the Russian special services in the bordering territories.

International

• As stated by the European Commission President Barroso, European Union will provide Ukraine with 1 bln. EUR of macro financial aid and will help to rebuild the Donbass.
• United States decided to widen its sanctions against oil & gas and energy sectors of Russian economy. Newly sanctioned are “Gazprom”, ‘Gazpromneft”, “Lukoil”, “Surgutneftegaz”, “Rosneft”, biggest Russian bank “Sberbank”. At the same time, European sanctions against Russian energy and financial companies, as well as persons from Russian authorities and DPR and LPR terrorists, came into force.
• As reported by Le Figaro, despite the France claim to freeze the delivery of Mistral class helicopter carriers to Russia, the first one should be tested in the sea with Russian crew on board.   

Trends

• Ukrainian society perceived quite ambiguously the joint announcement by the representatives of European Commission and Ukrainian Ministry of Foreign Affairs, supported by the ultimatum by the Russian Minister of Economic Development, on delay of the implementation of the economic part of the association agreement with the EU.