October 07, 2014

06/10/2014 Ukraine: Daily Highlights - Inflation growth accelerated in Ukraine in September

06/10/2014 Daily Highlights from “Digests & Analytics Ukraine” News Agency


Inflation growth accelerated in Ukraine in September. Temporary investigation committee of the Ilovaysk tragedy works behind closed doors. Territories controlled by DPR and LPR are heading towards humanitarian catastrophe.
Ukraine
  • President Poroshenko fired the Head of the Border Control Agency Lytvyn and his first deputy. Lytvyn is being blamed for the failures of the border control, suspected in corruption and bribery.
  • State Statistics Agency reported acceleration of monthly inflation to 2.9% in September 2014. YTD consumer prices index grew up by 16.2%. National Bank worsened the GDP decline forecast from -6.5% to -8.3% for the year.
  • Temporary investigative commission of the Parliament is investigating the defeat and heavy casualties of Ukrainian army near Ilovaysk. It is working behind closed doors as military operation is ongoing.
  • The Office of Prosecutor brought official accusations against the judge of Pechersky District Court Volkova, who has recently released from jail one of the key suspects in the execution of Maidaners under recognizance not to leave, leading to his escape.
  • Prime Minister Yatsenyuk submitted anti-corruption legislative package, agreed with the President, to the Parliament and appealed to the Speaker to ensure it to be immediately discussed and adopted during the nearest session.
  • Official exchange rate of the NBU hasn’t changed - 12.94 UAH/USD, 16.34 UAH/EUR, 3.27 UAH/10 RUR. Journalists have demonstrated to the Head of NBU Gontareva that it is impossible to buy any foreign currency in cash. NBU used 725 mln. USD to support the exchange rate in September.

War in Ukraine

  • Donetsk has been intensively shelled by militants. Seven civilians have been killed and dozens wounded. Makyivka, Debaltseve and Zolote in Luhans’k region have been shelled as well. Militants continue unsuccessful attempts to attack Donetsk International Airport. Firefights have also been reported in other districts of Donetsk and in Debaltseve.
  • DPR and LPR terrorists stopped the process of prisoners of war exchange, while accusing official Kyiv of doing that. Minsk memorandum implied an «all-for-all» exchange.
  • Ukrainian Foreign Affairs Ministry declared the official casualties data since the beginning of the «ceasefire» period - 56 military killed and 316 wounded, 32 civilians killed. Around 1,200 shellings of towns and attack attempts on Ukrainian army positions by militants have been evidenced.
  • Authorities of so called Donetsk and Luhans’k republics plan to conduct «elections» on November 2nd, where Russian mercenaries will be able to vote. Russian textbooks have been provided to Donetsk and Luhans’k schools. Hunger is starting among civilian population of Luhans’k region.
  • German convoy, including 112 trucks with humanitarian aid for Donbass, have just entered Ukraine.
  • General Prosecutor's Office has opened a criminal investigation into the abduction of the Crimean Tatars in Crimea. Crimean Tatars leader Dzemilev said that the planned «population census» will be used as a preparatory step for a forced deportation of Crimean tatars from the peninsula.

International

  • New NATO Secretary General Stoltenberg, during his first visit to Poland,  called reinforcement of its allies security and support of the independent, democratic and oriented to the West Ukraine, as the key task of the Alliance.
  • President Poroshenko and Assistant Secretary of State for European and Eurasian Affairs Nuland, during negotiations in Kyiv, discussed questions of financial assistance to Ukraine, control of the state border with Russia, military collaboration and reform of the Ukrainian security system. The main topic of the meeting of Victoria Nuland with Ukrainian Prime Minister Arseniy Yatsenyuk was natural gas negotiations with Russia.
  • USA, Canada and Great Britain send their advisors to Ukraine in order to help in preparations for the winter when energy and gas supply disruptions are be possible, but the back up plan should be developed by Ukrainian side.
  • Official exchange rate of Russian ruble overcame the psychological barrier of 40 RUR/USD and continues to decline, following the stock market indices.
  • Russian Prime Minister Medvedyev declared a necessity to find a compromise with Ukraine in questions of gas supplies. Minister of Economic Development of Russia Ulyukayev said that no reasons to introduce economic sanctions against Ukraine have been registered so far.

Trends


  • Concealment of real data on Ukrainian military casualties, combined with non-recognition of fighters as combat actions participants could lead to a social explosion.

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