July 08, 2015

07/07/2015 Ukraine: Daily Highlights - The negotiations of the Minsk Group on the settlement of the conflict in the Donbass

The negotiations of the Minsk Group on the settlement of the conflict in the Donbass
OSCE Representative Saydik

07.07.2015 Daily Highlights by the Digests & Analytics Ukraine News Agency

Topics from Media and Social Networks

  • The negotiations of the Minsk Group on the settlement of the conflict in the Donbass.
  • Prime Minister Yatsenyuk told about energy policy.
  • The collapse of the Chinese stock market.

Key Events n Ukraine

  • President Poroshenko signed the law on exemption from military tax of servicemen, taking part in anti-terrorist operation.
  • An announced extraordinary session of the Verkhovna Rada to adopt laws necessary for obtaining of the next tranche of the IMF loan, laws on decentralization and local elections, planned for July 9, was cancelled.
  • Prime Minister Yatsenyuk took part in the expanded board of the Ministry of Energy and Coal Industry and told about his idea of reforms in the energy sector.
    He called to conduct an independent  public audit of the "Energoatom" in connection with the attempts of the Russian forces to gain control over financial and commodity flows after the decisions on the refusal of the monopoly of fuel supply from Russia and the completion of nuclear power units were adopted.
    Ukraine is ready to provide the transit of natural gas to the EU on last year's conditions if an agreement with Russia and the European Union is signed .
    In the fall the testing of a new model of the electricity market with direct contacts of consumers and producers, and the introduction of exchange trading of electricity, will begin.
    The Prime Minister insists on the exclusion from the process of privatization of power generating capacities of Russian businessman Grigorishin and believes that "Tsentroenergo" must be purchased by a large foreign company, and not by the offshore company with Russian roots.
    Yatsenyuk considers it necessary to use the sea transport for deliveries of coal to reduce the dependence on Russian supplies.
  • Farmers have already collected more than 2 million tons of grain.
  • The court arrested until bailment two prosecutors who were detained during the search of their offices, and a businessman involved in the case, with the possibility of bail. President Poroshenko promised to keep the resonant case under special control.
  • The official hryvnia exchange rate continues to decline: 21.70 UAH /USD (+0.43 UAH), 23.72 UAH/EUR (+0,31 UAH), 3.79 UAH/RUR 10 (+0.02 UAH). The fall against euro and dollar over the last two days was about 3%.

Ukraine at War

  • Negotiations of the Minsk contact group on settlement of the situation in the Donbass ended without specific results, however, the OSCE Representative Saydik called them constructive. The representatives of the self-proclaimed "republics" claimed that the process dynamics does not give hope for a sustainable truce. The meeting focused on economic regulations and access to the prisoners. The talks in Minsk did not become a reason to stop the militants attacks of the positions of the Ukrainian troops. During the last day three soldiers were injured , in the evening, during clashes with the subversive groups in areas of Schastye two soldiers were killed, and two more were injured. At night, the shellings intensify sharply.
  • Russia is preparing the invasion to Ukraine of the next "convoy". The Ukraine's Foreign Ministry says that such deliveries of goods without going through the Ukrainian customs are intended exclusively for the supply of Russian military and militias under their control.
  • The OSCE mission observers continue to record the transfer of coal by heavy-duty trucks at the Russian-Ukrainian border checkpoints inspected by them. The rotation of possible members of the armed groups and intense rail transfers are recorded, for the inspection of which the observers are not admitted.

Ukraine and the World

  • The General Committee of the OSCE Parliamentary Assembly for Democracy, Human Rights and Humanitarian Affairs condemned the kidnapping of Ukrainian citizens, their forcible transfer to the territory of Russia, followed by the arrest, and demanded  from the Russian Federation their immediate release.
  • The EU summit to resolve the Greek financial crisis, is scheduled for July 12. German Chancellor Merkel demanded that the government of Greece should provide until July 9 detailed proposals that could give the country a chance to obtain further financial assistance. She ruled out the possibility of writing-off of the Greek debt. Chairman of the European Union Tusk believes that the failure of the talks would mean the bankruptcy of Greece. The European Commission is seriously considering the scenario of the country's exit from the Eurozone.
  • The Chinese stock market collapsed. More than 170 companies did not enter the bidding. The total amount of the loss is estimated at about $ 3 trillion. This decline is the largest in 20 years. The cause of the collapse is, as experts believe, the speculative buying of shares through loans. The government is trying to save the situation by buying the shares of companies with high market capitalization, reducing the public offering and trading fees, but these measures have not yet yielded the desired result. China is the third largest country - the importer of Ukrainian goods. The crisis in China after the Greek crisis could negatively affect the world economy.
  • France offered to the US to buy out the "Mistral" class helicopter carriers which it refused to transferto Russia because of the aggression against Ukraine.
  • In the Black Sea the NATO ships with fleets of Bulgaria, Romania, the US, Greece and Turkey carried out the large-scale exercises to simulate scenarios of the crisis response.

The Trends

  • High rent caused the a decrease in the rate of extraction of Ukrainian natural gas. However, some private companies continue to increase the pace of production. Energy Minister Demchishin said that Ministry of Finance strongly oposes the reduction of rent.

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