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CONTENT
1.Topnews…page5
2.ArmedconflictinUkraine`seast…page5
Pro-Russianseparatistsmasstroopsalonglineofcontact
Russiancontinuessendingweapons,troopstoDonbas
Ukraineloses1,550soldiersduringantiterroristoperation,sayspresident
Pro-RussianseparatistsuseprisonersforrecoveryoperationsatDonetsk
airport-OSCE
Pro-RussianseparatistsopenfireatrepresentativesofInternationalRedCross
OSCEextendsmandateofmonitoringmissiontoUkraineforyear
UkraineasksUNtosendpeacekeeperstoDonbas
UkrainianpresidentlistsconditionsforholdingelectionsinDonbas
3.Internationalpolitical…page8
Ukraine-Russia
UkrainiandoctorsexaminepilotinRussiancustody
Crimeanissue
RussianpresidentdiscussespreparationforCrimeanannexation
Russialauncheslarge-scalemilitarydrillsinCrimea
Crimeanauthoritiessentenceparticipantsinpro-Ukrainianrallytocommunity
service
Pro-UkrainianactivistarrestedinCrimea
Crimeanlawenforcerssearchapartmentsofjournalists
Ukraine-EU
EUprolongssanctionsagainstRussianofficials,separatists
UkrainianagrariansexhaustEUannualexportquotas
Ukraine-USA
Pentagon:nofinaldecisiononarmssuppliestoUkraine
USAtoprovideUkrainewithadditionalnon-lethalaid
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USAimposessanctionsonUkraine'sex-ministers,separatists
Ukraine,USAsignagreementonassistanceinlawenforcement
Ukraine-world
Ukrainereportsonuseofhumanitarianaidfrompartnerstates
4.Domesticpolitical…page12
NSDCapprovesspecialself-governanceregulationsforcertainareasofDonbas
Ukrainianpresidentvetoeslawrequiringcabinetapprovalofutilityrates
Ukrainianpresidentokayshighersalariesforofficials,MPs
YetanotherexplosionrocksOdessa
ThreejudgesofKievPecherskyydistrictcourtsuspended
Prosecutorspronouncefiveex-membersofparliament'stabulationcommission
wanted
FormerZaporizhzhyagovernorfounddead
5.Economy…page14
IMFboardapproves17.5bn-dollarloanforUkraine
IMFexpectsUkrainetoreturntogrowthin2016
EuropeanParliamentcommitteesupportsmacro-financialaidtoUkraine
SwedentoprovideUkrainewith100m-dollarinterest-freeloan
FitchexpectsgrowthofUkraine'sforeignreserves
FinanceMinistrylaunchesconsultationsonforeigndebtrestructuring
Ukrainetobeginmassprivatizationin2015-financeminister
Coreinflationacceleratesto33.2percent
Bankslose350mdollarsinJanuary
CourtreturnsZaporizhzhyaaluminumsmeltertostateownership
6.Energy…page16
Naftohaztransfersanothertrancheof15mdollarstoGazprom
GermanRWEbecomeslargestwesternsupplierofnaturalgastoUkraine
IMFgivesgreenlighttoselling1.69bndollarstoNaftohaz
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Shell,Ukrhazvydobuvannyatoterminateenergyproductioncontract
Ukrainecutsoffsubsidiestocoalindustry-energyminister
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1.TOPNEWS
Pro-Russianseparatistsmasstroopsalonglineofcontact
RussiacontinuestosupplyweaponsandsoldierstoDonbas.
YoucanfindmoredetailsinthesectionARMEDCONFLICTINUKRAINE'SEAST.
RussianpresidenttalksaboutoperationonCrimeanannexation
RussiacontinuestoviolatehumanrightsintheCrimeanpeninsula.
YoucanfindmoredetailsinthesectionINTERNATIONALPOLITICAL.
IMFapproves17.5bn-dollarloanforUkraine
Kievhasalreadyreceivedthefirst5bn-dollartrancheoftheloan.
YoucanfindmoredetailsinthesectionECONOMY.
2.ARMEDCONFLICTINUKRAINE'SEAST
Pro-Russianseparatistsmasstroopsalonglineofcontact
Pro-RussianrebelfightersandtheRussianmilitarycontinuetomasstroops
alongallthekeydirectionsandalongthelineofcontact.Additionally,they
continuetoredeploytheirunitsandmilitaryequipment,thepresscentreofthe
Ukrainianantiterroristoperationhasreported.
Inparticular,separatistshaveconcentratedtheirforcesnearthecitiesof
Horlivka,Shchastya,StanytsyaLuhanska,Mariupol,Avdiyivka,Pisky,
Dokuchayevsk,andShyrokino.Theyhavealsobeenactivelytransporting
equipmentandartilleryammunitionthroughtheDebaltseverailwayhuband
havebeenformingmilitaryunitsnearDonetsk.
WeshallremindyouthatUkrainehaswithdrawnheavyweaponsfromtheline
ofcontactinDonbasinlinewiththeMinskagreements.However,pro-Russian
rebelforcesrefusedtoallowobserversofthespecialmonitoringmissionto
UkraineoftheOrganizationforCooperationandSecurityinEurope(OSCE)to
monitorthewithdrawalofheavyweaponsfromtheirside.
Additionally,pro-Russianseparatistscontinuetoviolateacease-firebyshelling
positionsoftheUkrainianantiterroristoperationforcesdozenstimesonadaily
basis.
PresidentofUkrainePetroPoroshenkoadmittedthefailureoftheMinsk
accordsandcalledontheWesterncountriestostepuppressureonMoscow.
Russiancontinuessendingweapons,troopstoDonbas
TheUSStateDepartmenthasevidencethatRussiacontinuessendingheavy
weaponstotheoccupiedterritoriesintheeastofUkraineandtomass
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additionalforcesalongthestateborder,thespokespersonfortheUS
DepartmentofState,JenPsaki,hassaid.
Forhispart,NATOSecretary-GeneralJensStoltenbergalsoconfirmedthat
RussiacontinuestosupplyweaponstoandtrainrebelforcesinDonbas.
ThestaffoftheUkrainianantiterroristoperationreportedthattheselfproclaimedDonetskandLuhanskpeople'srepublicshaddeployedtwo30,00033,000-strongarmycorps,addingthatRussianmercenariesrepresented80-85
percentofthem.
TheSecurityServiceofUkraine(SBU)saidthatRussianMaj-GenAleksey
Zavizencoordinatedtheactionsofpro-RussianrebelforcesinDonbas.
TheRoyalUnitedServicesInstituteforDefenceandSecurityStudiesreleaseda
reportlastweekinwhichitpresentedevidencethattheRussianmilitaryhas
beenactivelyparticipatinginthewarintheeastofUkrainesince14July2014.
ItsexpertsbelievethatRussiamightsoonlaunchanewoffensiveonthe
Ukrainianpositionsand,inparticular,onMariupol.
ItshouldalsobenotedthatanotherhumanitarianconvoyfromtheRussian
FederationarrivedinDonbason15March.Likethepreviouscargoes,the
convoycrossedtheUkrainianborderillegally.
Ukraineloses1,550soldiersduringantiterroristoperation,sayspresident
Nearly1,550Ukrainiansoldiershavebeenkilledsincethebeginningofthe
antiterroristoperationinDonbas,UkrainianPresidentPetroPoroshenkohas
said.
TheUkrainianheadofstatespecifiedthat1,230killedsoldiershadservedfor
theArmedForcesofUkraine,132fortheNationalGuard,99hadworkedforthe
InteriorMinistry,63fortheStateBorderService,sevenfortheSecurityService
ofUkraine,and16fortheStateEmergenciesService.
WewouldliketopointoutthattheUNhasestimatedthatmorethan6,000
peoplehadbeenkilledduringtheconflictinDonbas.
Pro-RussianseparatistsuseprisonersforrecoveryoperationsatDonetsk
airport-OSCE
On11March,observersoftheOSCEspecialmonitoringmissiontoUkraine
noticedduringavisittoDonetskairportthatpro-Russianrebelfighterswere
usingUkrainianprisonerstocleanupdebrisandsearchforthedead.
UkrainianPresidentPetroPoroshenkoaccusedpro-Russianseparatistsof
inhumanetreatmentofUkrainianprisoners.
Additionally,theUkrainianpresidentdecriedalackofprogresswiththeissueof
releasingUkrainianprisoners.
SBUchiefValentynNalyvaychenkosaidinaninterviewwiththeLB.uanews
andanalysiswebsitethatthankstotheworkofthecentrefortheexchangeand
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releaseofpeopleillegallydetainedbyrebelfightersorbytheRussianmilitary,
theUkrainiangovernmenthadmanagedtofree2,480people.
Pro-RussianseparatistsopenfireatrepresentativesofInternationalRed
Cross
On11March,pro-RussianrebelfightersusedsmallarmstoopenfireattheRed
CrossmissionnearDonetsk.Nomedicalpersonnelwaskilled,thepresscentreof
theantiterroristoperationhassaid.
OSCEextendsmandateofmonitoringmissiontoUkraineforyear
On12March,thepermanentcounciloftheOSCEdecidedtoextendthemandate
ofthespecialmonitoringmissiontoUkraineby12monthsuntil31March2016.
Themissionmightalsobeextendedfrom500to1,000peopleifneeded.
TheUkrainianForeignMinistrysaidthatRussiacontinuedtoblockaproposal
submittedbyUkraineandothercountriestoexpandtheOSCEmissiontothe
Ukrainian-Russianborder.
UkraineasksUNtosendpeacekeeperstoDonbas
UkrainehassentUNSecretary-GeneralBanKi-moonapreliminaryrequestto
sendapeacekeepingmissiontoDonbas,thepresscentreoftheUkrainianForeign
Ministryreportedon13March.
ThepresscentrealsosaidthatUkrainewouldsendanotherrequesttotheUN
aftertheVerkhovnaRadaapprovesacorrespondingproposal.
TheRussianForeignMinistrysaidthattheRussianambassadortotheUNwould
notsupportthesendingofapeacekeepingcontingenttoUkraineifaproposalto
thiseffectisintroducedfortheconsiderationoftheUNSecurityCouncil.
InFebruary,UkrainianForeignMinisterPavloKlimkinsenttheEUaletterwitha
requestaboutthepossibilityofsendinganEUpeacekeepingmissiontoUkraine.
UkrainianpresidentlistsconditionsforholdingelectionsinDonbas
LocalelectionsinDonbaswouldbepossibleonlyafterpro-Russianrebelfighters
satisfyrequirementssetforwardbytheOSCE,UkrainianPresidentPetro
Poroshenkohassaid.
Inparticular,hesaidthatallforeignmilitarycontingentshouldbewithdrawn
fromtheeastofUkraine,thatbroadcastingofUkrainianmassmediaandthe
activityofUkrainianpoliticalpartiesshouldberesumedthere.
PoroshenkostressedthatDonbasshouldberepresentednotbysoldierswith
weaponsbutbypeoplewhoaretrustedbythelocalpopulation.
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3.INTERNATIONALPOLITICAL
UKRAINE-RUSSIA
UkrainiandoctorsexaminepilotinRussiancustody
On14March,UkrainiandoctorsexaminedUkrainianMPNadiyaSavchenko,who
isincustodyinMoscow.
ThedoctorssaidthatSavchenko'sconditionissatisfactory.Theysubmittedtheir
recommendationsforendingherhungerstrike.
WeshallremindyouthatNadiyaSavchenkowentonhungerstrikeon15
December2014toprotestagainstherillegaldetentioninRussia.On5March
2015,shestartedtograduallyfinishherhungerprotestduetothedeterioration
ofherhealth.However,afewdayslatersheaccusedRussiandoctorsofusing
wrongmethodsforhelpingherfinishthehungerstrikeanddemandedtobe
examinedbyUkrainianphysicians.
CRIMEANISSUE
RussianpresidentdiscussespreparationforCrimeanannexation
On16March,theanniversaryofthepseudo-referendumonCrimea'saccessionto
Russia,Russianmediashowedadocumentarycalled“Crimea.ThePathto
Homeland”,inwhichRussianPresidentVladimirPutinadmittedthathe
personallycontrolledtheannexationofthepeninsula.
AccordingtotheRussianleader,theannexationofCrimeawasconductedalong
withamilitaryoperationaimedatallegedlyprotectingthepeninsulafroma
possiblemilitarytakeoverbyUkrainianparamilitaries.Putinsaidthattodisarm
theUkrainianarmywithstrengthof20,000,RussiasenttotheCrimeanpeninsula
itsofficersoftheMainIntelligenceDirectorateandMarineCorpsfightersunder
theguiseofstrengtheningthesecurityoftheRussianbase.
Also,theRussianpresidentsaidthatheconsideredthepossibilityofusing
nuclearweaponsinthecaseofarmedconfrontationwithWesterncountriesin
Crimea.
TheUkrainianForeignMinistrysaidthatPutin'sstatementsinthefilmcouldbe
seenasanadmissionofapre-plannedoccupationcampaign.
Inhisturn,UkrainianPrimeMinisterArseniyYatsenyukaskedtheJustice
MinistrytosendthefilmtotheHagueTribunalasevidenceofwhohadordered
theRussianmilitarytooccupyUkrainianterritoryinCrimea.
Russialauncheslarge-scalemilitarydrillsinCrimea
Russiahasstartedlarge-scalemilitarydrillsat19trainingsiteslocatedinthe
NorthCaucasianandSouthernFederalDistricts.Thelatterincludestheterritory
ofannexedCrimea,theGermanbroadcasterDeutscheWellehasquotedthepress
serviceofthedistrictsassaying.
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Morethan8,000gunnerswilltakepartintheexercises.Additionally,1,500unitsof
weapons,includingself-propelledartillerygunsHostaandmultiple-launchrocket
systemsTornado-Gwillbeinvolvedinthedrills.
NATOSecretary-GeneralJensStoltenberghassaidinaninterviewwithThe
GuardianthatthealliancewasseriouslyconcernedwithdrillsofRussiansoldiers
whichhaverecentlybecomemorefrequentaswellaswithanincreaseinthe
RussianmilitarypresencealongtheNATOborders.
Crimeanauthoritiessentenceparticipantsinpro-Ukrainianrallyto
communityservice
Afterarallyontheoccasionofthe201stbirthdayanniversaryofUkrainianwriter
andpoetTarasShevchenkoinSimferopol'sGagarin'sparkon9March,theCrimean
authoritiesdetaineditsorganizerLeonidKuzminaswellasactivistsVildar
ShukurdzhyeyvandOleksandrKravchenko.Theywereaccusedofviolatingthe
termsofholdingassemblies.
On12March,Simferopol'sZaliznychnyycourtsentencedthedetainedto40hoursof
publicservice.
Thecourtruledthattheactivistswereguiltyofusingbannedsymbols-Ukraine's
flag-whichwerenotindicatedinanapplicationforholdingtherally.
WealsolearnedthatKuzminhadbeenfiredfromtheSimferopolschoolwherehe
hadworkedasahistoryteacherdueto"notcorrespondingtotheoccupied
position".
On14March,KravchenkowasonceagaindetainedfordisplayingUkrainiansymbols
inSimferopol.
Pro-UkrainianactivistarrestedinCrimea
On13March,Simferopol'sKievskyydistrictcourtissuedanordertoarrestCrimean
TatarTalyataYunusovfortwomonths.Heisaccusedofparticipatinginarallyin
supportofUkraine'sterritorialsovereignty,whichhadbeenheldneartheCrimean
parliamentbuildingon26February2014.
On6March,AsanCharukhovwasdetainedoverthesameissue.Hewasreleased
aftermanyhoursofquestioning.
TheRussianInvestigationCommitteelaunchedacriminalcaseagainstthedeputy
chairmanoftheCrimeanTatarself-styledgovernmentMajlis,AkhtemChyyhoz,
overtheorganizationofpublicdisturbanceson26February2014.Hewasdetained
on29January.
Weshallremindyouthaton26February2014,CrimeanTatarsblockedasessionof
theCrimeanparliament.On27February,thebuildingoftheCrimeanparliament
wasstormedbytheRussianspecialforces.Lawmakerswereescortedintothe
sessionhall,whichputthebeginningoftheRussianoccupationofCrimea.
Crimeanlawenforcerssearchapartmentsofjournalists
On13March,theFederalSecurityServiceofRussia(FSB)searchedtheCrimean
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apartmentoftheformereditoroftheCentreforJournalistInvestigations(CJI),
AnnaAndriyevska,whonolongerlivesinCrimea.
AndriyevskasaidthattheCrimeanauthoritieshadopenedacriminalcaseagainst
heroverareportonvolunteersfightingfortheKrymbattalion,inwhichshehad
allegedlycalledfortheoverthrowoftheoccupationgovernmentinCrimea.
Thesameday,13March,FSBoperativessearchtheapartmentofanotherCJI
journalistNataliyaKokorina,followingwhichshewasdetained.Shewasfreed
aftersixhoursofquestioning.
TheLB.uanewsandanalysiswebsitereportedthatRussiahadestablishedcontrol
overalmostallCrimeanmassmedialastyear.Anumberofindependent
journalistsandbloggerswereforcedtofleeCrimeabecauseofrepression,the
websiteadded.
UKRAINE-EU
EUprolongssanctionsagainstRussianofficials,separatists
On13March2015,theEUprolongeduntil15Septemberthesanctions(banonEU
entry,freezeofassets)againstRussianofficialsandseparatistsfromtheselfproclaimedDonetskandLuhanskpeople'srepublics(DPRandLPR,respectively)
duetotheiractionsunderminingUkraine'sterritorialintegrity.
TheresolutiontothiseffectfollowsupontheCounciloftheEU'srespective
decisionadoptedatthelevelofforeignministerson29January.
Restrictivemeasuresapplyto150personsand37organizations.Thelistincludes
Russiangovernmentmembers,MPs,businessmen,high-rankingrepresentativesof
ministriesandoffices,andleadersofCrimea,theDPRandLPR.
TheyalsoapplytocompaniesandorganizationsfromRussiaandCrimeaand
militaryformationsfromtheself-proclaimedLPRandDPR.
UkrainianagrariansexhaustEUannualexportquotas
UkrainianagrarianshaveexhaustedtheirquotasonexportstotheEUfor2015
aheadofschedule,Ukraine'sDeputyAgrarianPolicyMinisterVladyslava
Rutytskahassaid,accordingtoanInterfax-Ukrainereport.
SherecalledthatUkrainewasallowedtoexport400,000tonnesofcorn,5,000
tonnesofhoney,and10,000tonnesofappleandgrapejuice.Sheaddedthatthe
agrarianshadalsoexhaustedathree-monthquotaonpoultryexports(4,000
tonnes).
UKRAINE-USA
Pentagon:nofinaldecisiononarmssuppliestoUkraine
TheUSAcontinuestoconsideranoptionofprovidingUkrainewitharms,nofinal
decisionhasyetbeenmade,PentagonrepresentativeBrianMcKeonhassaid.
AccordingtoWhiteHousespokesmanJoshEarnest,USPresidentBarackObama
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hasnotsignedoffontheideaoflethalaidforUkraine,amidconcernsitwould
spark"greaterbloodshed"inDonbas.
TheGermanambassadortotheUSA,PeterWittig,earliersaidthatamonth
ago,aftertalkingtoGermanChancellorAngelaMerkel,theUSpresident
decidedagainstsendinglethalarmstoUkraine.Thetwoagreedthatitwas
importantto"togivesomespaceforthosediplomatic,politicaleffortsthatwere
underway".
EuropeanCouncilPresidentDonaldTusksaidthattherewasnosingleopinion
intheEUregardingarmssuppliestoUkrainethereforeitwasuptoeach
countrytodecide.
AccordingtoPresidentPetroPoroshenko,Ukrainehascontractswith11
membersoftheEUonsupplyofarms,includingthelethalones.
HeisconfidentthatWesternpartnerswillprovideUkrainewithlethalarmsand
slapnewsanctionsonRussiashoulditstepupitsaggressioninDonbas.
USAtoprovideUkrainewithadditionalnon-lethalaid
KievwillshortlyreceivefromWashingtondrones,nightvisiondevices,counterbatteryradars,communicationsystemsandotherequipmentaswellas230
militaryvehiclesworth75mdollars,theUkrainianpresidentialpressservice
saidon11March2015.
AFPquotedanofficialsourceintheWhiteHouseassayingthattheUS
governmentdecidedtosupplyUkrainewithdronesandHumveearmouredcars.
USAimposessanctionsonUkraine'sex-ministers,separatists
On11March2015,theUSDepartmentoftheTreasuryexpandedthesanction
listtoincludeformerUkrainianprimeministersMykolaAzarovandSerhiy
Arbuzov,formerHealthMinisterRayisaBohatyryovaandanumberofproRussianseparatists.
ThesanctionswerealsointroducedagainsttheEurasianYouthUnionandthe
RussianNationalCommercialBank.
Ukraine,USAsignagreementonassistanceinlawenforcement
KievandWashingtonsignedanagreementonreformingUkraine'slawenforcementbodieson13March2015.
USambassadortoUkraineGeoffreyPyattsaidthat16.77mdollarswouldbe
spentonthereformoftheInteriorMinistry,9.4mdollarsonthereformof
criminaljustice,includingontheAnticorruptionBureau.
TheFBIandtheUSDepartmentofJusticewillhelpUkrainetoreformits
Prosecutor-General'sOffice.
Theagreementwillalsofacilitatecooperationbetweentheborderservicesof
thetwocountries.
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UKRAINE-WORLD
Ukrainereportsonuseofhumanitarianaidfrompartnerstates
On12March2015,theUkrainianDefenceMinistrypublishedareportonthe
useofhumanitarianaidreceivedfrompartnerstates.
ThedonorsincludedCanada(whichsuppliedaidworth20mdollars),theUSA
(15.5mdollars),Poland(5.5mdollars),Australia(2.3mdollars),GreatBritain
(1.8mdollars),Slovakia(632,000dollars),Norway(630,000dollars),France
(600,000dollars)andtheNetherlands(500,000dollars).
By10March,Ukrainianshavetransferred155.51mhryvnyas(6.5mdollars)to
theaccountsoftheDefenceMinistrywithintheHelptheUkrainianArmydrive.
4.DOMESTICPOLITICAL
NSDCapprovesspecialself-governanceregulationsforcertainareasof
Donbas
On12March2015,theNationalSecurityandDefenceCouncilofUkraine
approvedaresolutiontodefinethebordersofcertaindistrictsinDonetskand
Luhanskregionswherespecialself-governanceregulationsareplannedtobe
introduced.
UkrainianPresidentPetroPoroshenkosaidthatthebordersofthesedistricts
werestipulatedintheMinskaccords.
Ukrainianpresidentvetoeslawrequiringcabinetapprovalofutilityrates
PresidentPetroPoroshenkohasvetoedthebillobligingtheNational
RegulatoryCommissionforEnergyandUtilitiestosettariffsongasand
electricityatalevelwhichislowerthantheeconomicallyjustifiableoneupon
approvaloftheCabinetofMinisters.
Ukrainianpresidentokayshighersalariesforofficials,MPs
On13March2015,PresidentPetroPoroshenkosignedadecreecancellinga
caponsalariesforpublicofficials,budget-paidemployees,NationalBankof
Ukrainestaff,MPsandprosecutorsasof1April.
YetanotherexplosionrocksOdessa
Nocasualtieswerereportedafteranexplosivedevicedetonatedoutsidethe
officeoftheSelf-HelppartyinOdessaon12March2015.
Policeareinvestigatingitasaterroristact.
TheSecurityServiceofUkraine(SBU)detainedtwosuspectedorganizersofthe
explosion.
ThreejudgesofKievPecherskyydistrictcourtsuspended
On10March2015,theSupremeQualificationCommissionofJudgessuspended
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KievPecherskyydistrictcourtjudgesSerhiyVovk,ViktorKytsyukandOksana
Tsarevychfortwomonthsbecauseofcriminalproceedingstheyarefacing.
On11March,acourtinVinnytsyaruledthatTsarevychshouldbereleasedonher
ownrecognizanceandwearananklemonitor.Sheshouldreporttoaprosecutor's
officeforquestioningonfirstcall.
On13March,thesamecourtchosethesamemeasureofrestraintforKytsyuk.
ThecasesarebeingheardinVinnytsyabecausetheProsecutor-General'sOffice
(PGO)haslittletrustinKiev-basedcourts.
Earlier,theKievHolosiyivskyydistrictcourtrefusedtohaveVovkarrested.
ThePGOopenedanothercriminalcaseagainstVovksuspectinghimofunfreezing
theaccountsofformerAgrarianPolicyMinisterMykolaPrysyazhnyukinthe
summer2014.
Prosecutorspronouncefiveex-membersofparliament'stabulation
commissionwanted
On13March2014,theProsecutor-General'sOffice(PGO)hasservednoticesof
suspicionofcommittingcrimesandputonawantedlistanumberofMPs,who
weremembersofparliament'stabulationcommission,includingVolodymyr
Demydko,AndriyPinchuk,StanislavSkubashevskyy,YaroslavSukhyyand
OleksandrZubchevskyy.
Apre-trialinvestigationwasopenedintotheorganizationandholdingofthe
parliamentvoteontheso-called16January2014"dictatorshiplaws".
ThepressserviceofthePartyofRegionsreportedthatDemydkofellintoacoma.
ThePGOearlierservedanex-MPandsecretaryofparliament'stabulation
commission,SerhiyHordiyenko,withanoticeofsuspicion.On10March,the
KievPecherskyydistrictcourtgrantedhimbailof97,000hryvnyas(about4,000
dollars)asalternativetohavinghimarrested.Thebailwasdepositedthesame
day.
On16January2014,theUkrainianparliamentpassedanumberoflaws
significantlylimitingcitizens'rightsandfreedoms.Membersofpro-government
factionsvotedbyashowofhandswithoutdiscussingthelawsorcountingthe
votes.ThisescalatedtheconfrontationandenragedtheMaydanprotesters.The
lawswereannulledafterthenPresidentViktorYanukovychfledthecountry.
FormerZaporizhzhyagovernorfounddead
AformermemberofthePartyofRegionsandex-governorofZaporizhzhya
Region,OleksandrPeklushenkowasfounddeadon12March2015.Policesaid
agunwoundpointedtosuicide.
Peklushenkowasonawrittenpledgenottoleaveafterhewasnotifiedofbeing
suspectedoforganizingthedispersalofEuro-Maydanpro-democracyprotestsin
Zaporizhzhyain2014.
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MykhayloChechetovandStanislavMelnyk,alsoformermembersoftheParty
ofRegions,andMykolaSerhiyenko,aformerfirstdeputydirector-generalof
theUkrainianrailwaycompanyUkrzaliznytsya,committedsuicidesrecently.
AseniorprosecutorofOdessa'sMalynovskyydistrict,SerhiyMelnychuk,died
afterfallingoutofahigh-riseon14March.
5.ECONOMY
IMFboardapproves17.5bn-dollarloanforUkraine
TheExecutiveBoardoftheInternationalMonetaryFundon11Marchapproved
anewfour-yearextendedprogramme(ExtendedFundFacility)forUkraine
worthatotalof17.5bndollars.Thenewprogrammereplacestheprevious
stand-byarrangement.
On13March,theIMFdisbursedtoKievthefirsttrancheof5bndollars.The
NationalBankused2.5bndollarsoftheamounttoreplenishtheforeign
exchangereserves.
AccordingtotheIMF,Ukrainein2015mayreceive16.3bndollarsfromexternal
sources,including10bndollarsfromtheIMF,1.8bndollarsfromtheEuropean
Union,and2bndollarsfromtheUnitedStates.
TheamountofannualtranchesthatUkrainemayreceivefromtheIMFduring
2016-18,providedthattheUkrainiangovernmentimplementsaprogrammeof
reforms,willbe2.5bndollars.
IMFexpectsUkrainetoreturntogrowthin2016
AccordingtotheInternationalMonetaryFund,Ukraine'srealGDPthisyearwill
declineby5.5percent,withinflationreaching27percentduetothedevaluation
ofhryvnyaandincreaseinnaturalgasandheatingtariffs.Thecountry'spublic
debtwillreach94percentofGDP.
However,theIMFexpectsthattheUkrainianeconomywillgrowby2percent
alreadyin2016,projectingaverageannualGDPgrowthat4percentthereafter.
Thecurrentaccountdeficitin2016-18shouldstabilizeat1.25percent.By2018,
inflationwillfalltoasingle-digitlevel,andthenationaldebtwillbereducedto
71percentofGDPby2020.
Inaddition,accordingtoIMFestimates,therateoftheUkrainiancurrency
againsttheUSdollarshouldreachUAH/USD23.8bytheendof2020.
EuropeanParliamentcommitteesupportsmacro-financialaidtoUkraine
TheEuropeanParliamentForeignAffairsCommitteeon9Marchsupportedthe
EuropeanCommission'sproposaltoprovidemacro-financialassistancetoKiev
intheamountof1.8bneuros.
TheEuropeanParliamentwillconsidertheproposalataplenarysessionon25
March.
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ThenewassistanceprogrammewillbethethirdprogrammeforUkraine.Itis
expectedthattheaidwillbedisbursedinthreetranches,withthefirsttwo
cominginthesecondhalfof2015andthethirdarrivinginearly2016.
UnderthefirsttwoprogrammesKievhasalreadyreceived1.36bneurosofthe
totalamountof1.61bneuros.Theremaining250meuroswillbetransferredin
thenearfuture.
SwedentoprovideUkrainewith100m-dollarinterest-freeloan
TheSwedishgovernmenthasdecidedtoextenda100mloantoUkraine,with
interestpaymentscoveredbytheSwedishside,UkrainianPresidentPetro
Poroshenkohassaid.
Inaddition,accordingtohim,theUkraine-Swedencooperationprogramme
projects175mdollarstobeallocatedtotheUkrainiansideovertheperiodof
sevenyears.
FitchexpectsgrowthofUkraine'sforeignreserves
AccordingFitchRatings,aglobalratingagency,Ukraine'sinternationalreserves
underfavourableconditionscanreach13bndollarsthisyearagainstthecurrent
5.6bndollars.
Thecountry'scentralbankisexpectingitsreservestogrowto17bndollarsby
theendof2015throughtheimplementationofreformsandthankstothe
provisionoffinancialassistancebyinternationalpartners.
FinanceMinistrylaunchesconsultationsonforeigndebtrestructuring
TheFinanceMinistrywillbeginconsultationswithexternalcreditorsonpublic
debtrestructuringon13March,FinanceMinisterNatalieJareskohassaid.
Accordingtoher,theFinanceMinistryintendstorestructuretheEurobondsof
Oshchadbank(SavingsBank),Ukreximbank,UkrzaliznytsyaandthecityofKiev.
ItisalsoplannedtorestructurethepubliclyguaranteeddebtofUkravtodor,
state-runcompanyUkrmedpostachanddesignbureauPivdenne.
Ukrainehopestorestructure15bndollarsindebt.
TheInterfax-Ukrainenewsagencyreported,citingitssources,thatduringthe
consultationswithexternalcreditors,theFinanceMinistryplanstodiscussall
possiblerestructuringoptions,includingextensionofdebtmaturity,decreasein
couponpaymentsandprincipal.
Itshouldbenotedthatthecabinethasestablishedanewpositionof
commissionerforpublicdebtmanagement.
Ukrainetobeginmassprivatizationin2015-financeminister
ThisyearUkrainewillbeginlarge-scaleprivatizationofstate-owned
enterprises,FinanceMinisterNatalieJareskohassaid.
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Accordingtoher,thereare3,300state-ownedenterprisesinUkraine,mostof
whichareunprofitable.
Coreinflationacceleratesto33.2percent
Accordingtothestatestatisticsservice,thecoreconsumerpriceindexin
Ukraine(excludingCrimeaandtheantiterroristoperationzone)inFebruary
2015increasedby5.4percentagainstthepreviousmonthascomparedto2.6
percentmonth-on-monthgrowthseeninJanuary2015.
Sincetheyear'sbeginning(JanuaryandFebruary),coreinflationwas29.7
percentcomparedtothesameperiodofthelastyear.
Bankslose350mdollarsinJanuary
AccordingtotheNationalBank,lossesofUkrainianbanksinJanuary2015
amountedto8.5bnhryvnyas(354mdollars).
Thebanks'assetsinJanuaryfellby0.84percentcomparedwiththebeginning
oftheyearto1.31tnhryvnyas(54.58bndollars).
CourtreturnsZaporizhzhyaaluminumsmeltertostateownership
TheSupremeCourtofUkraineon12Marchissuedadecisionthatupholdsthe
lawfulnessofthedemandsputforwardbytheProsecutor-General'sOffice
regardingthereturntothestateofa68.01-percentstakeinZaporizhzhya
AluminumPlant.
ItshouldberecalledthatinFebruary2001theStatePropertyFundofUkraine
andcompanyAvtoVAZ-Investconcludedacontractforthesaleoftheplant's
shares,accordingtowhich,inadditiontopayingthepriceoftheshares,the
buyer'swasobligedtorepaytheprivatizedcompany'sdebts.However,asnoted
bytheProsecutor-General'sOffice,thebuyerhasfailedtofulfilitsinvestment
obligationtothestatewithregardstothedebtrepayment.
TheplantwasownedbyRussianoligarchOlegDeripaska.
6.ENERGY
Naftohaztransfersanothertrancheof15mdollarstoGazprom
State-runenergycompanyNaftohazUkrayinyon12Marchtransferredto
Russia'sGazpromanotherprepaymentof15mdollarsfornaturalgassupplies
inMarch.
Withtheaccountofthisamount,theUkrainiansidehastransferredtothe
Russiangasmonopolyatotalof60mdollarsforgasdeliveriesinMarch.
Asreported,Naftohazrefusedfrommakinglargeprepaymenttranchesafter
Gazpromstartedtoarbitrarilysupplynaturalgastothemilitantsoftheself-
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proclaimedDonetskandLuhanskpeople'srepublicsunderthecontractwith
Naftohaz.
RussianFinanceMinisterAlexanderNovaksaidthatGazpromhasagreedto
excludethevolumesdeliveredtotheDonetskandLuhanskpeople'srepublics
fromtheoverallbilltoNaftohaz,butwillissuethebillforsuchsupplieslater.
ThenextgastalksbetweenUkraineandRussiawiththemediationofthe
EuropeanUnionarescheduledfor20March.
GermanRWEbecomeslargestwesternsupplierofnaturalgastoUkraine
GermancompanyRWEwasthelargestwesternsupplierofnaturalgasto
Ukrainein2014,selling1.71bncu.m.offuel,newsandanalysiswebsite
THEINSIDER.uahasreported,citingdataobtainedfromtheCustomsService
andthestate-runenergycompanyNaftohazUkrayiny.
FrenchGDFSUEZdelivered1.07bncu.m.ofgas,Norway'sStatoilsupplied535m
cu.m.,andGermanE.ONpumped378mcu.m.toUkraine.
UkrainealsopurchasedminoramountsfromGermanTrailstone,Advanced
EnergyTrading,Romania'sGlobalNRG,Switzerland'sAxpoTrading,DufEnergy
Traiding,andCyprus'sOstchem.
However,thelargestsupplierwasRussianGazpromwith7.96bncu.m.,
accountingforabout70percentofthegasdeliveriestoUkraine.
Atthesametime,NaftohazUkrayinyheadAndriyKobolevpredictsthatthe
shareofgasimportedfromRussiabytheendof2015willnotexceed40percent
ofthetotalsupply.Heexplainedthatthiswillbepossiblethroughincreased
reversed-flowgassuppliesfromtheEUandreductionofgasconsumptioninthe
country.
ItshouldbenotedthatrecentlyUkrainehassignificantlyreducednaturalgas
importsfromHungary.
IMFgivesgreenlighttoselling1.69bndollarstoNaftohaz
Overthefirsthalfof2015,theNationalBankofUkrainewillbeabletosell
1.69bndollarsdirectlytothestate-runenergycompanyNaftohazUkrayinyto
ensurecriticalimportsbythecompany,accordingtothenewEFFprogramme
forUkraineapprovedbytheIMF.
However,theprogrammelimitstheamountofdomestictreasurybondsthatthe
centralbankcanpurchaseforthepurposeofrecapitalizingNaftohaztothe
following:17.2bnhryvnyas(717mdollars)bytheendofMarch,26.1bn
hryvnyas(1.09bndollars)bytheendofJune,28.3bnhryvnyas(118bndollars)
bytheendofSeptemberandDecember.
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Shell,Ukrhazvydobuvannyatoterminateenergyproductioncontract
Dutch-BritishcorporationShellandstate-runUkrhazvydobuvannyaareplanningto
terminatetheagreementonjointexplorationandproductionofhydrocarbonsintwo
wellsinKharkivRegion,accordingtoastatementmadebyShellon12March.
Accordingtothereport,thepartieshavecompletedtheexplorationworks.Basedon
theirfindings,itwasdecidedthatfurtherworkundertheprojectisnoteconomically
feasible.
EarlierShellwithdrewfromthetalksonnaturalgasproductioninSkyfskafield(the
BlackSeashelf).Inaddition,thecompanyhasfailedtostartoperationsinYuzivska
fieldduetothefightinginDonbas.
Ukrainecutsoffsubsidiestocoalindustry-energyminister
Thenationalbudgetfor2015containsnoarticlesonsubsidiestothecoalindustry,
EnergyMinisterVolodymyrDemchyshynhassaid.
Accordingtohim,withoutsuchsubsidies,theonlywaytosupporttheindustryisto
attractforeigninvestment.Certaininvestmentagreementshavebeenreachedwith
China,whichwillprovide3.6bndollarsforcompletingconstructionofcoalmines,
upgradingthermalpowerplantsandreplacingnaturalgaswithotherenergy
sources,theministersaid.
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