07/02/2015 Ukraine: Daily Highlights - "Normandy four" attempted to rescue the talks in Minsk

09.02.2015 Daily Highlights by "Digests & Analytics - Ukraine" News Agency

Topics of the day

Attacks of Russian-terrorist troops on the Debal'tsevo foothold increased dramatically. "Normandy four" attempted to rescue the talks in Minsk. Cabinet introduced border regime in a combat zone. Prosecutor General Yarema fired. Hryvnia plummeted.

Key Events of Ukraine

• According to media, the Prosecutor General Yarema submitted his resignation. President Poroshenko wants to propose candidacy of Deputy Prosecutor General Shokin for this position.
• Kharkiv regional military commissioner dismissed from office for failure measures of partial mobilization.
• The Cabinet introduced border regime in the border zone of hostilities in the Donbass and in some districts of Kherson and Kharkiv regions from February 10.
• Gasoline and diesel fuel prices on the Ukrainian gas station jumped up after hryvnia FX rate rapidly falls.
• According to the State Statistics Service, core inflation in January compare to December 2014 was 2.6%, from January 2014 - 26.1%.
• The work of the IMF mission in Kiev extended until 11 February. Analysis of the Memorandum , which appeared  in open media, shows that Ukraine is preparing to take on the obligations of sharp cuts in public spending, increasing natural gas prices, dismissing of public employees, raising the retirement age.
  Government asks MPs to approve amendments to the budget for the successful completion of negotiations with the IMF.
  Official dollar FX rate reached another peak 24.96 UAH / USD (+1.83 UAH), 28.57 UAH / EUR (+2,18 UAH) 3.78 UAH / 10 RUR (+0.42 UAH). Interbank Exchange reached 25,5-26,5 UAH / USD. The real selling rate of the dollar in exchange offices was 28 UAH/USD.

Kyiv Life

• A group of deputies proposed to return October Palace into state ownership and create  Museum of Maidan in it.

Ukraine at War

• The situation on the Debal'tsevo foothold dramatically complicated. Debaltseve and nearby towns are under heavily shelling by all kinds of artillery and tank attacks by militants who are using the latest Russian military equipment to attack. They partly succeeded in taking the Kharkiv-Rostov route which is used to deliver supplies to Ukrainian units on the foothold under control,. The OSCE reported that the Ukrainian army retreated several kilometers, the militants and the Russian-terrorist advancing despite the losses. ATO Staff has confirmed information about airstrikes by Russian aircraft.
• Artillery and MLRS from Russia continues to fire on the municipalities in Luhansk region. Donets'k is subjected to intense shelling. DNR leaders say they are shelling Ukrainian sabotage groups but locals confirm that the city is under fire from Russian troops and militants. According to the UN 263 civilians were killed and more than 600 wounded only during  last week in the Donetsk region.
  The corridors to evacuate residents of Debaltsevo and Avdeevka are closed again due to constant shelling. About 5,000 people were evacuated from those towns within a week.
• Lawyers of deputy Savchenko, who is forcibly kept in a Russian prison, sent an application to the ECHR requesting an urgent review of the case. Health of  Savchenko conducting a hunger strike demanding recognition as a prisoner of war is estimated as critical. The foreign ministers of the EU countries demanded her immediate release.

Ukraine and the World

• The closed meeting of Minister for Foreign Affairs of Germany, France, Ukraine and Russia took place in Berlin. They had to prepare a document for signing at the meeting of Heads of "Normand Four" states in Minsk. Leaders of the world are hoping that negotiations in Minsk will be constructive, but not excluding a negative result.
• The OSCE voiced the proposal on the establishment of a demilitarized zone in southeastern Ukraine. Ukrainian side insists on the closing of the border, ceasefire and withdrawal of all troops, mercenaries and military equipment from the country according to Minsk agreements.
• EU Foreign Ministers at the request of Ukraine postponed imposing additional sanctions against Russia until 16 February. According to the Ukrainian administration it will give a new chance to continue negotiations on the crisis in the Donbass.
• Candidate for Secretary of Defense Carter believes that the former Soviet republics - Ukraine, Moldova and Georgia should not be a zone of Russian interests. It is in their interest to efforts to increase the security and cooperation with NATO.
• State Department spokesman Psaki announced that the US will not participate in peace talks with the Donbas as confident in their European and Ukrainian partners and all positions of the parties in the negotiations are agreed.
• President Obama after talks with German Chancellor Merkel said at a press conference that the United States has not yet decided to supply lethal weapons Ukraine.
• European Commissioner for Enlargement and Neighbourhood Policy Khan said that international donors are willing to participate in a conference on the restoration of Donbass and provide financial aid, but Ukraine has to announce its list of investment needs.
• British Prime Minister Cameron supposed the exit of Greece from the eurozone and instructs the central bank and the Ministry of Finance to prepare for such a scenario.

Trends

• Ukraine has introduced new rules for financial monitoring which will carry out by banks, financial institutions, lawyers, notaries, auditors and persons who provide legal services.
• President Poroshenko dismiss the Prosecutor General Yarema and his deputies with no apparent legal consequences for their activities and investigation of corruption. It is planned to appoint his deputy Shokin who was connected with the president as godfather as the Prosecutor General.