11/09/2014 Ukraine: Daily Highlights - Russia has intensified its pressure to Ukraine on the energy front

11.09.2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency

Ukraine is continuing its fight on the energy front under pressure of coal mining infrastructure destructions and cuts in natural gas deliveries to Europian partners by Gazprom.

Ukraine

• Situation in the coal industry became critical due to the military actions. Many mines in the combat areas have been flooded and couldn’t be restored. Vice Prime Minister Groysman said that the deficit of coal has reached 5 mln tons. Thermal power stations are being stopped due to coal shortages.  
• NBU slightly lowered the exchange rate of the national currency: 12.98 UAH/USD (-2 cop), 16.77 UAH/EUR (-6 cop), 3.49 UAH/10 RUR. US dollar quotes reached 13.3-13.66 UAH/USD at the end of the trading.
• SSU has banned 35 representatives of Russian media from entry to Ukraine for the period from 3 to 5 years.

Kyiv

• Traditional festival of modern art "Gogol-fest" opened in Kyiv. The festivals’ motto is "Ukraine will show itself to the World". The majority of participants are Ukrainian groups and performers.
• The wave of false calls about mining of buildings and infrastructure objects is ongoing. Perpetrators have sent previously recorded message about mercury water emissions from mobile phones.

War in Ukraine

• The territory controlled by terrorists has widened to include border areas in the South of the Donets’k region. Militants now control Komsomolsk and Telmanovo. The Ukrainian army is justifying leaving of towns by the frontline shaping and regrouping of troops. Numerous breaches of the truce by terrorists have been observed during the day. Attacks on the checkpoints have been recorded. Donets’k airport has been shelled three times with heavy artillery, mortars and multiple rocket launchers “Grad”. Evidence of terrorists having “Tochka-U” (SS-21 Scarab by the NATO classification) rocket launch system has been found in Donets’k. The city is being continuously shelled with heavy artillery. However, power, water and natural gas service have been restored for the majority of districts. Russian troops seized another part of Ukrainian territory in Kherson region on the border with Crimea, and established a checkpoint there.
• A woman and a child have been killed during a terrorist attack on a bus in the Pervomays'k area of Luhans’k region. NSDC advises residents of the occupied territories not to return home.
• 21 Ukrainian soldiers have been released from captivity according to the truce protocol. At the same time, Russian Ministry of Foreign Affairs said that film director Sentsov and pilot Savchenko couldn’t be released as part of the cease-fire protocol as they are not considered prisoners of war.

International

• Prime Minister of Ukraine Yatsenyuk said that Ukraine appealed to the EU to check Russian actions on natural gas supply cuts to the EU member states, testifying that Russia uses natural gas as an economic weapon not only against Ukraine but also against Europe. Ukraine had pre-paid gas supplies to European partners and expects fulfillment of the commitments in full, otherwise Ukraine will not be able to survive the winter. Foreign Affairs Minister Klimkin has declared that situation with reverse natural gas supplies will not affect gas transit to Europe.
• United States and European Union decided to introduce wide scale sanctions against financial and energy sectors of Russia from the 12th of September.
• Oil prices went down to 18 months minimum.  

Trends

• Massive outdoor and TV election campaigns provoke public outrage in Ukrainian citizens, who believe that parties and “majoritarian” candidates should use money to support the army and reinforce the defense, but not on a political PR.