February 06, 2016

02/05/2016 Ukraine: Daily Highlights - Some of the weapons from which Maidan activists were shot have been found

Some of the weapons from which Maidan activists were shot have been found
Some of the weapons from which Maidan activists were shot have been found

02.05.2016 Daily Highlights by the Digests & Analytics Ukraine

Topics from Media and Social Networks

  • Some of the weapons from which Maidan activists were shot have been found.
  • Poroshenko approved a new military-administrative division of Ukraine.
  • NBU Head Gontareva sees no possibility of nationalizing Russian banks in Ukraine.
  • Military prosecutor Matios launched investigation into the occupation of Crimea.

Key Events in Ukraine

  • President Poroshenko confirmed the decision of the National Security Council on the new military-administrative division of the territory of Ukraine according to the structural changes to the Armed Forces management wywtem and the new military doctrine, providing for mechanisms to respond to the Russian aggression threat.
  • Poroshenko believes it necessary to adopt a law allowing him for quickly announce mobilization in case of sudden changes to the military and political situation. He considers the current law, whereby conscription terms are announced one month before the beginning of the conscription year, to be inefficient.
  • Prosecutor General Shokin and SBU Head Hrytsak reported that they found 23 automatic guns that were used for killing Maidan activists.
  • Prime Minister Yatsenyuk said during the Government hour in the in Parliament that the Cabinet planned to continue its work, would fight to the last, and would only resign all together. The resignation of the Minister of Economic Development Abromavicius caused Ukrainian Eurobonds to drop by 2%.
  • According to Yatsenyuk, the deficit of Naftogaz was reduced from $10 bn to $1 bn in 2015, and in 2016 it should start making profit. He said that the entire property of Ukrnafta was arrested against its tax arrears.
  • MP Sobolev said that Batkivschyna and Samopomich factions in the Parliament would not work with the Yatsenyuk government, but that does not mean their withdrawal from the coalition.
  • The National Bank said that in 2015 Ukraine had a balance of payments surplus for the first time in the last five years due to a significant reduction of the current account deficit and a faster decline in imports compared to exports decrease. NBU expects the inflation to slow down to 12% at the end of 2016, and to 8% at the end of 2017. In 2015, GDP fell by 10.5%, and in the current year the regulator expects GDP growth of 1.1%. Ukraine’s consolidated budget deficit in 2015 was UAH30.9 billion. This is 2.3 times less than the 2014 deficit.
  • NBU Head Gontareva believes that the fluctuations in the hryvnia exchange rate should not be seen as something extraordinary. The linked the falling exchange rate to the decline in business activity at the beginning of the year, the deterioration of the situation on the commodity markets, and the political instability in the country. Gontareva refused to predict future changes to the hryvnia exchange rate, saying that the regulator is only responsible for inflation, while maintaining a stable exchange rate is not an NBU responsibility. According to her, the National Bank cannot nationalize the Russian banks, ensuring 15% of the banking system’s capital, and compensate for their deposits, however, if the NSDC decides to nationalize them, the NBU will comply with it.
  • The hryvnia exchange rate has not changed on the last day of the week: 25.91 ₴/$ (+0.01 UAH), 29.03 ₴/€ (+0.01 UAH), 3.35 ₴/10 ₽ (-0.03 UAH).

Kyiv

  • Kyiv continues street art campaign to decorate buildings with murals. According to the organizers, now it is the turn on the walls of high-rise buildings in "sleeping districts" in the suburbs.

Ukraine at War

  • The situation in the combat are in Donbas deteriorated again, with militants massively using heavy weapons. A Ukrainian serviceman was killed in Zaytseve and three others wounded as a result of the shelling. According to intelligence reports, a large militants’ unit is deployed near Horlivka, with a large number of artillery and tanks and an operational reserve, which can be a sign of the preparations for the offensive.
  • Principal Deputy Chief Monitor of the OSCE Monitoring Mission to Ukraine Hug said that the closure of a checkpoint in Zaytseve near Horlkvka caused problems for local residents working in Artemivsk.
  • According to media reports, Russian curators prepare to hold their own "election" in Donbas in late April.
  • Military Prosecutor Matios announced the investigation by his department of the circumstances of the Russian occupation of Crimea. A number of documents and transcripts of meetings of the National Security Council will be declassified and released. Out of the more than 20,000 servicemen that were deployed in Crimea, only about 6,000 returned to Ukraine. The Military Prosecutor's Office investigated almost 15,000 cases of desertion. Crimean prosecutors are wanted, and criminal proceedings have been instituted against Crimean judges.

Ukraine and the World

  • Foreign Minister Klimkin said that Ukraine wants to see Turkey among the participants of the negotiations on the de-occupation of Crimea.
  • Swedish arbitration will consider the claims of the Privatbank to the Russian Federation, the case will be heard in The Hague. The claim amount has not been made public.
  • Turkish President Erdogan said that Syrian President Assad and Russia were guilty of killing 400,000 Syrian residents. US Secretary of State Kerry also accused Russia of huge civilian casualties among Syrians caused by the bombings.
  • Danish Minister of Foreign Affairs Jensen believes that sanctions against Russia could be lifted if Ukraine does not implement the reforms that it has undertaken as part of the Minsk agreements.
  • German Ambassador Weil said there was no alternative to the Minsk process, despite the fact that the citizens of Ukraine are afraid that the special status of the occupied territories of Donbas could jeopardize the country's integrity. According to him, Ukrainain authorities have no "plan B" to resolve the crisis in Donbas.
  • According to European Commissioner for Foreign Affairs Mogherini, new foreign policy and security strategy should be developed in the EU by the end of June 2016 to respond to the increasing threat of terrorist attacks, the migration crisis and the deterioration of relations with Russia.

The Trends


  • German investors are kept away from Ukraine not by the war in Donbas, but by the prospects of dealing with local courts, said the Ambassador of Germany at a public forum dedicated to the constitutional reform. According to him, it is necessary to do away with the possibility of buying court judgments.
  • National Police Head Dekanoidze believes her Ministry’s reform would take three to four years and should be focused on scrapping the "middle management" ensuring the transfer of money from protection racket to top managers of the law enforcement agencies.

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