06/02/2015 Ukraine: Daily Highlights - President Putin took a timeout after negotiations with the leaders of France and Germany to settle the crisis in Donbass

06/02/2015 Daily Highlights by "Digests & Analytics - Ukraine" News Agency

Topics of the day 

President Putin took a timeout after negotiations with the leaders of France and Germany to settle the crisis in Donbass. The hryvnia on the interbank market is falling quickly. Mobilization in Ukraine is in full swing.

Key Events in Ukraine

• The Prosecutor General Yarema answered deputies of the Verkhovna Rada questions. Former President Yanukovych and his associates are suspected of creating an organized criminal group with the aim of usurping power. The Attorney General could not clearly explain why current MPs associated with Yanukovych were not charged. He asks deputies to support a law banning the release of murderers and corrupt on bail.
• About 100 thousand people have received writs under the fourth wave of mobilization, more than a half have passed medical examination. 16 thousand are in retraining camps. New call for military service may be launched in March.
• According to the State Statistics Committee, inflation in January exceeded 3%. Prices of rice, fruits and vegetables, fish, meat and bread increased the most.
• Auction for sale of 310 thousand tons of oil by company "Ukrnafta", co-owned by oligarch Kolomoisky, did not take place because all bids for purchase were declined. If second auction will not take place the state company "Naftogaz" will have to redeem these volumes at a starting price.
• Airfare in Ukraine increased by 30% in a day due to the jump in the dollar exchange rate .
• NBU recognized bank "Nadra" insolvent and appointed a temporary administration.
• Hryvnia exchange rate continues to fall: 23.13 UAH / USD (+5.13 UAH), 26.39 UAH/EUR (+5,81 UAH) 3.37 UAH/10 RUR (+0.62 UAH). The rate on the interbank market reached 24,5-25,3 UAH/USD.

Kyiv Life

• Public transport fare in the capital will rise by half on February, 7. Secondary school students are entitled to free travel.

Ukraine at War

• The situation in the combat zone remains extremely tense, fighting continue along the whole front line. Number of shelling and attacks on the positions of the Ukrainian army is measured in tens. Ukrainian gunners are proactive, destroying militants clusters and equipment.
• Outskirts of Dzerzhins’k and Mariupil are under active shelling’.
• About 700 residents were evacuated through the humanitarian corridor in Debaltseve. Residents of Avdiyivka also have been evacuated.
• Metinvest Corporation, owned by oligarch Akhmetov stopped two metallurgical plants on the territory controlled by the rebels  of DNR due to the fighting.
• In Odessa, there was an explosion near one of the branches of "Privat". The explosion of the railway bridge was prevented, another bomb was defused on the street.

Ukraine and the World

• As a result of negotiations of the leaders of Germany, France and Russia in Moscow to resolve the crisis in the Donbass final document is not signed, but final approval of its provisions is scheduled in the course of telephone conversations between Putin, Poroshenko, Hollande and Chancellor Merkel on February,8.
• US issued a national security concept, which defines the response to the aggression of Russia in Ukraine, support for security of European allies, including the energy sector. The document also highlights that the doors for cooperation with Russia in areas of mutual interest remain open.
• EU President Tusk said that the EU would not compromise on the issue of sovereignty and territorial integrity of Ukraine.
• Greece's finance minister said the country is in an economic emergency, but Germany and the IMF refused to write off and restructure Greek debt.
• Russia refuses to discuss the price of gas to be supplied to Ukraine from April 1, 2015 until full repayment of debt by "Naftogaz".

Trends

• Author of the Polish reforms Balcerowicz believes that war is an added incentive, rather than an obstacle to reform. The main thing for Ukraine, he said is the urgent cuts in  government spending and the elimination of all obstacles to private business.