At a meeting of the NSDC President Poroshenko called Russia, the aggressor country, a main military threat to Ukraine, stressed the importance of countering the cyber threats during the hybrid war, and the need for the speedy establishment in Ukraine of the production of missiles and ammunition. Development and manufacture of new types of weapons and military equipment, and provision of a reliable level of country’s defense were called the priorities in the defense order for 2016. The National Security and Defense Council adopted a framework strategy for cyber security in Ukraine and a new division of the country into military administrative areas. The Cabinet of Ministers was instructed to approve the state program of reforming and development of the military-industrial complex until 2020 before February 29.
President Poroshenko offered to make technical changes to the law on absentee justice to facilitate the prosecution of those responsible for the killings and persecution of the Maidan activists, and to remove from the draft amendments to the Constitution in the area of judicial reform the provision, depriving the Parliament of the right to express a distrust to the General Prosecutor. Re-direction of the bill to the Constitutional Court is to be approved at a meeting of the Parliament on January 28.
The Verkhovna Rada failed to override the President's veto on the law on foreign currency loans.
The Cabinet additionally capitalized two largest Ukrainian state-owned banks for the amount of UAH 15 billion.
The Government dismissed acting Minister of Environment Kurykin for misuse of half a billion hryvnia from the amount received by Ukraine from the sale of emission quotas under the Kyoto Protocol.
The District Court of Kiev postponed the elections to the district councils of the capital indefinitely.
Energy Minister Demchishin said that in 2016 Ukraine plans to buy 11-13 billion m3 of natural gas. The whole volume may be obtained by the reverse route, however, Demchishin admits the possibility of resumption of the trilateral gas talks with the EU after the 1st quarter of 2016.
The State Statistics Committee reported that the drop in industrial production in 2015, compared to the previous year, amounted to 13.4%.
The State Treasury informed that the budget deficit in 2015 amounted to UAH 45.15 billion , which is one and a half times less than the deficit in 2014.
The National Bank continues to decrease the official hryvnia exchange rate : 24.87 ₴/$ (+0.02 UAH), 27.07 ₴/€ (+0.15 UAH), 3.15 ₴/10 ₽ (+0.11 UAH).
During the day the militants were shooting along the entire front line in the Donetsk region, using mortars, anti-aircraft mounts and tanks . Major battles took place in Maryinka, near the Donetsk airport and on the outskirts of Horlivka. According to official reports, one soldier was wounded . In Lugansk region the ceasefire is observed.
In Minsk, the regular meeting of the contact group was held. The militants once again made the exchange of prisoners impossible, offering the obviously unacceptable option. Representative of Russia Gryzlov and representatives of the "Republics" demanded to bind the voting on amendments to the Ukrainian Constitution to the law on the peculiarities of local self-government in the occupied territories. According to him, the special status of these areas should be introduced on a permanent basis, as suggested by German Foreign Minister Steinmeier. Their demands were completely rejected by the Ukrainian side, which stated that the elections and the amendments to the Constitution are possible only after the cease-fire, the withdrawal of Russian troops and returing of the control over the state border to Ukraine.
The Humanitarian subgroup agreed on the continuation of coal supplies to the Ukrainian power stations, restoration of the power lines, demining of the areas and opening of a new automobile checkpoint in Zolote of the Lugansk region.
Russia guaranteed the repayment of the debt for water consumed by the occupied areas of the Lugansk region.
The Human Rights Watch organization believes that the introduction of the pass system in January 2015 negatively affected the humanitarian situation in the Donbass. It is stated in the report on the situation in the region that after the announcement of the cease-fire in September, both sides violated the laws of war. The organization has credible information that both parties were involved in the torture and violent treatment of the detainees.
The Poroshenko Bloc faction in the Parliament has not yet decided on its position regarding the Government's draft law on legalization of the gambling business, but deputy Nesterenko said that public access to the gambling houses is unallowable. Member of the committee on fiscal policy Golovko called the Government initiative absurd , as it will lead to deterioration of social conditions for the population and will ruin many families whose members are gambling addicts. At the same time, the illegal gambling halls are beinng opened in many places under the name "The National Lottery".
The fuel sales volumes at the gas stations during the year decreased by 15%. The A-95 gasoline at the pump costs from 18 to 21 UAH per liter. Head of the WOG company Koretsky said that with zero cost of oil the gasoline at the pump cannot be cheaper than 14.5 UAH per liter, of which almost UAH 10 are taxes, excise duties and fees.
The Da Vinci AG agency analysts believe that the current crisis is much more profound than the crisis of 2008-2009. Wholesale trade in the national currency decreased by 13%, retail - by more than 20%. This indicates a significant decrease in incomes of the population and the problems not only in official but also in shadow economy, which is making people even more vulnerable. The Government failed to compensate for the drop in revenue from the export by stimulating the domestic demand.
The coalition Council considered the report of the Cabinet of Ministers, the coalition agreement improvements and the personnel changes in the Government. The Government report hearing is scheduled for February 16. The Samopomich faction in the Verkhovna Rada decided to withdraw its Minister from the government, and considers it necessary to sign a new coalition agreement and to form a new Government headed by the new Prime Minister.
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