INTHESPOTLIGHT ©GorsheninInstituteApril2015Allrightsreserved ISSUE57(220) 04/27/2015 INTHESPOTLIGHT ISSUE57(220) 04/27/2015 CONTENT 1.Topnews…page5 2.ArmedconflictineastUkraine…page5 RussiacontinuesamassingtroopsinDonbas,onUkrainianborder Russiasends25thaidconvoytoDonbas OSCE:militantsmoveheavyarmsfromstorageforparticipationinparade OSCEmaybringmoreobserverstoDonbasbysummer OnlyUNpeacekeepersorEUmissioncanensurepeaceinDonbas-Poroshenko 3.Crimeanissue…page6 CrimeancourtarrestsATRTVcameraman FirstdeputyheadofMajlisdetainedinCrimea CrimeanrightsactivistshowsphotoofinjuriescausedbyRussianFSB 4.Internationalpolitical…page7 Ukraine-Russia UkrainenamesstartingdateofRussia'saggression PACEtostripRussiaofvotingrightsuntilJune NorwaystepsupsanctionsagainstRussia,Donbasmilitants Ukrainianparliamentapproves“Savchenkolist” RussiaaccusesSavchenkoofillegalbordercrossing RussiancourtsentencesUkrainiannationaltosevenyearsinprisonon terrorismcharges Media:Putin'saideregularlyvisitedUkrainein2013-14 Putin'snegativeratinginUkraineover75percent Ukraine-EU Kiev,Brussels,MoscowdiscussEU-Ukrainefreetradearea Belgium,Portugal,FinlandratifyEU-Ukraineassociationagreement UkrainewantsRigasummittogiveitEUmembershipprospect Francetosupplyhelicopters,radiocommunicationsystemstoUkraine 2 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 LawaboutUkrainianInsurgentArmycomplicatesPolish-Ukrainianhistorical dialogue–Polishleader Ukraine-USA Ukrainian-USmilitarydrillbeginsinLvivRegion Ukraine-NATO UkrainianpresidentendorsesannualprogrammeofcooperationwithNATO Ukraine-Chilli Ukraine,Chileagreeonvisa-freetravel 5.Domesticpolitical…page11 Defenceministersaysterrorgroupssteppingupactivity SaboteursblowuprailwaybridgeinLuhanskRegion Prosecutorsdisclosecauseofpeople'sdeathinOdessa'sTradeUnionHouseon 2May MinersprotestinKiev,EnergyMinistrypointsfingeratAkhmetov Ukraine'ssecurityserviceopenscaseonfinancingofminers'protests UkrainianMPsaysAkhmetovsubjecttocaseonfinancingofterrorism HireddemonstratorsdemandKievmayor'sdismissal-media UkrainianpresidentsetsupcommissiontoselectcandidatestoSupremeJustice Council CabinetannouncescompetitionforheadofUkraine'santicorruptionagency Ukrainianparliamentpostponesentryintoforceoflawonprosecution UkrainianparliamentexemptsdefenceproductsfromVAT,duties Ukrainianscientiststobepaidspecialpensionsagain ParliamentsetsupspecialcommissionondevelopmentofUkraine UkrainianparliamentamendslawbanningpropagandaofNazism,Communism AuditChambertooverseebudgetreceipts Ukrainianpresidenttightenspunishmentformilitarycrimes Self-HelpMPgivesupseat Courtarreststhreeex-BerkuttroopsovershootingofMaydanactivists 3 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 Statereclaims43.5mdollarsworthoflandlostduringYanukovychrule SonofformerDonetskregionalgovernoraccusedoffinancingseparatists Courtacquitsex-PartyofRegionsmemberLandik 6.Media…page15 TVichannelgoesbackonair 7.Economy…page15 IMFtosupportUkraineinrestructuringefforts EUdisburses250meurostoUkraine Ukrainetoraise2bndollarstorebuildDonbas,Poroshenkosays Parliamentapproves200m-euroloanagreementwithEIB USloanguaranteesforUkrainianEurobondstakeeffect UkrainesignsroadmapwithOECD Ukraine'sforexreservesupto10bndollars Balanceofpaymentsdeficitexceeds300mdollarsinMarch IndustrialrecessionslowsinMarch Ukrainianbankspost3.5bndollarsinlosssinceyearstart PrivatizationtargetstobeevaluatedbyFrenchexperts-president AtlasjetpermittedtoperformcharterflightsfromLviv 8.Energy…page17 UkrainereceivesgastransitordersfromEUtraders GasimportsfromEuropereach61percentinfirstquarter TrilateralgroupnottodiscusspaymentsforDonbasgassupplies–minister Ukrainestopspayingelectricitybillsforrebel-heldpartsofDonbas Presidentapprovescabinet'srighttoregulateelectricitymarketinATOarea Ukrtransnafta'sheadreplacedagain NaftohazdeclinesUkrnafta'soffertooffsetdividendsagainstdebts EnerhoatomsignscontractforuraniumsuppliesfromFrance UkrainehonoursmemoryofChernobyldisasterliquidators 4 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 1.TOPNEWS Russiacontinuestosupportseparatists Over55,000RussianservicemenaredeployedalongUkrainianborder. ReadmoreinARMEDCONFLICTINEASTUKRAINE. SecurityServiceofUkraineopenscaseoverfinancingofminers'protestsin Kiev ManagersofRinatAkhmetov'sDTEKaresummonedforinterviewsonthecase. ReadmoreinDOMESTICPOLITICAL. Ukrainereceives250meurosofaidfromEU TheUkrainianparliamenthasratifiedanagreementonborrowing200meuros fromtheEuropeanInvestmentBank. ReadmoreinECONOMY. 2.ARMEDCONFLICTINEASTUKRAINE RussiacontinuesamassingtroopsinDonbas,onUkrainianborder Russiahasnotstoppedsupplyingarmstomilitantsoftheself-proclaimedDonetsk andLuhanskpeople'srepublicsandamassingtroopsintheconflictarea,the UkrainianForeignMinistryhassaid. Accordingtotheministry,Russiacontinuesaccumulatingmilitaryequipmentand armedforcesinBelgorodandRostovregionsborderingonUkraine.Armyaviation hasbeenseenholdingexercisesinKrasnodarKray,RostovRegionandinoccupied Crimea. AccordingtotheantiterroristoperationHQ'sestimates,over55,000Russian servicemenhavebeendeployedalongtheUkrainianborder. NATOSecretary-GeneralJensStoltenberghassuggestedthatmoreactivesupplyof armsandammunitiontoDonbasandtheaccumulationoftroopsontheborderwith UkraineallowsseparatiststolaunchasuddenoffensiveagainsttheUkrainian positions. PolishForeignMinisterGrzegorzSchetynahassaidthatPolandalongsomeother countrymaysupportUkraine'sdefencecapabilityiftheconflictineastUkraine escalates. Russiasends25thaidconvoytoDonbas The25thso-calledhumanitarianaidconvoyfromRussiaillegallycrossedthe Ukrainian-Russianborderon23April2015.AccordingtotheStateBorderService ofUkraine,itmostlycontainednon-humanitarianaid. 5 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 OSCE:militantsmovheavyarmsfromstorageforparticipationinparade TheOSCESpecialMonitoringMissionhasrecordedthatpreviouslywithdrawn heavyarmshavedisappearedfromtheirstorageareas.Inparticular,fourGrad multiple-launchrocketsystemsdisappearedfromoneofthelocations,which,as theseparatistssaid,wererelocatedtotakepartinthe"9Mayparade". TheOSCEsaidthatifthemilitantshelda"parade"ofheavyarms,thiswouldbea violationoftheMinskagreements. OSCEmaybringmoreobserverstoDonbasbysummer TheOSCEisplanningtoincreasethenumberofitsobserversineastUkraineto 600bythesummer,OSCESecretary-GeneralLambertoZannierhassaid. HoweverErtugrulApakan,chiefmonitoroftheOSCESpecialMonitoringMission toUkraine,cannotseeanyreasonforincreasingthenumberofobserversbecause pro-Russianmilitantsblockthemissionfromvisitingallareasoftheconflictin Donbas. InMarch,theOSCEmemberstatesdecidedtodoublethemissioninUkrainefrom 429to1,000.Thereare331observersworkingonthegroundinDonbasnow. OnlyUNpeacekeepersorEUmissioncanensurepeaceinDonbas- Poroshenko UNpeacekeepersoranEUmissionshouldcometoUkrainetoensurepeacein Donbas,UkrainianPresidentPetroPoroshenkohassaid. HenotedthatpeacekeepersarenoalternativetotheOSCEmissioninDonbas. EuropeanCouncilPresidentDonaldTuskhassaidthatinthenearfutureitis impossibletoreachadecisiononthedeploymentofanEUpeacekeepingmission ineasternUkraine. RussianForeignMinisterSergeyLavrovsaidthatRussiaresolutelyobjectstothe deploymentofpeacekeepersinUkrainetosettletheconflictinDonbas. 3.CRIMEANISSUE CrimeancourtarrestsATRTVcameraman On22April2015,theSimferopolKievskyydistrictcourtarrestedacameramanof theCrimeanTatarTVchannelATR,EskenderNebiyev,fortwomonths.Heis suspectedoforganizingandtakingpartinthemassprotestsoutsidetheCrimean parliamenton26February2014. CouncilofEuropeCommissionerforHumanRightsNilsMuiznieksnoteda significantdeteriorationofhumanrightsinCrimea. FirstdeputyheadofMajlisdetainedinCrimea On24April2015,theRussianInvestigationsCommitteeinterviewedthefirst deputyheadoftheself-styledCrimeanTatargovernmentMajlis,Nariman Dzhelyalov.HewassummonedforaninterviewduringtheMajlismeeting. 6 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 EarlierCrimea'sso-calledlawenforcerssearchedDzhelyalov'shouse. ThefirstdeputyheadoftheMajlisisawitnessinthecaseofthemassprotestsoutside theCrimeanparliamenton26February2014. CrimeanrightsactivistshowsphotoofinjuriescausedbyRussianFSB Emir-UseinKuku,amemberofthecontactgroupforhumanrights,wasdetainedand questionedbytheRussianFederalSecurityService(FSB)inannexedCrimeaon20 April2015.Hishousewassearched.Hewasreleasedlaterthesameday. On23April,theactivistpublishedphotosofhisinjuriescausedbytheRussianFSB. AccordingtoKuku,doctorssaidthathehadakidneycontusion. ThecontactgroupforhumanrightsinCrimeawassetupundertheauspicesofthe CouncilofMinistersintheautumn2014tocoordinatethesearchformissingCrimean Tatars. 4.INTERNATIONALPOLITICAL UKRAINE-RUSSIA UkrainenamesstartingdateofRussia'saggression TheUkrainianparliamenton21Aprilapprovedthestatement“onrebuffingRussian militaryaggressionandovercomingitsconsequences.” Accordingtothedocument,thestartingdateofRussianaggressionis20February 2014. Atthesametime,thelawmakersaddressesRussiawithappealstostarttocomply withtheMinskagreements,toreleaseallhostagesimmediately,towithdrawits mercenariesfromtheUkrainianterritory,towithdrawthearmyfromtheborder,and toimmediatelyreturnCrimeaandSevastopoltoUkraine. Itshouldbenotedthatparliament'sstatementdefinestheconsequencesofRussia's aggression,sothatUkrainecouldofficiallylodgeclaimsagainsttheRussian Federation. PACEtostripRussiaofvotingrightsuntilJune TheBureauoftheParliamentaryAssemblyoftheCouncilofEurope(PACE)has recommendedpostponinguntilJunethediscussionofthepowersoftheRussian delegation,whichwaspreviouslydisposedofthevotingrightsinresponsetothe annexationofCrimeaanditssupportoftheself-proclaimedDonetskandLuhansk people'srepublics,rapporteurforRussiaTheodoraBakoyannishassaid. Atthesametime,HeorhiyLohvynskyy,thedeputyheadoftheUkrainiandelegation toPACE,saidthatUkrainewouldseekRussia'sexclusionfromtheassemblyifthereis noanynoticeableimprovementinthesituationinDonbasandCrimeabyJune. NorwaystepsupsanctionsagainstRussia,Donbasmilitants 7 NorwayhastightenedsanctionsagainstRussiafollowingasimilarmovebythe EuropeanUnion. ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 TherestrictionsaffectedfiveRussianofficials,includingRussianDeputyDefence MinisterAnatoliyAntonovandRussiansingerandMPYosifKobzon.Thesepersons arebannedfromenteringNorway,whiletheirassetsinNorwegianbankswillbefrozen. Thesanctionswerealsoimposedonanumberofpro-Russianmilitantsoftheselfproclaimedpeople'srepublicsinDonbasandseveralseparatistorganizations. Ukrainianparliamentapproves“Savchenkolist” TheUkrainianparliamenton22Apriladoptedtheso-called"Savchenkolist"which namesthepersonsresponsible,accordingtoMPs,fortheunlawfuldetentionbythe RussianauthoritiesofNadiyaSavchenko,militarypilotandmemberofUkraine's delegationtoPACE. Thelistincludes35people,particularlyRussianPresidentVladimirPutin,firstdeputy headofhisadministrationVyacheslavVolodin,RussianFederalSecurityService(FSB) chiefAleksandrBortnikov,leaderoftheself-proclaimedLuhanskpeople'srepublic IhorPlotnytskyy,Russianjudgesandjailservants.Also,itincludesRussiantycoons ArkadiyandBorisRotenberg,GennadiyTimchenko. TheUkrainianparliamentrecommendedthattheNationalSecurityandDefenceCouncil introducepersonalsanctionsagainstthosepersons. RussiaaccusesSavchenkoofillegalbordercrossing Russia'sInvestigativeCommitteehasbroughtfinalchargesagainstNadiyaSavchenko, UkrainianmilitarypilotandmemberofUkraine'sdelegationtoPACE.Inadditiontothe murderaccessorychargespresentedinthesummerof2014,theUkrainianpilotisnow accusedofillegallycrossingtheRussianborder. Itshouldberecalledthat,accordingtoSavchenko,shewascapturedbythepro-Russian militantsandtakentoRussiaatthecommandofIhorPlotnytskyy,leaderoftheselfproclaimedLuhanskpeople'srepublic. RussianForeignMinisterSergeyLavrovadmittedthatafterthetrialSavchenkomaybe pardonedinaccordancewiththeMinskagreement. RussiancourtsentencesUkrainiannationaltosevenyearsinprisononterrorism charges AcourtinRostov-on-Don(Russia)on21AprilsentencedOleksiyChirniy,whowas detainedbytheRussianauthoritiesonsuspicionofplanningterroristattacksinCrimea, tosevenyearsinprison.ChirniywasdetainedunderthecaseagainstUkrainianfilm directorOlehSentsov. ItshouldberecalledthataMoscowcourtinDecember2014alsoputinjailHennadiy Afanasyev,amemberoftheso-calledSentsov'sgroup,forsevenyears,findinghim guiltyofterrorism. AfanasyevandChirniyconfessedtheirguilt.Sentsovandthefourthdetainee, OleksandrKolchenko,denytheirinvolvementinterroristactivity. Media:Putin'saideregularlyvisitedUkrainein2013-14 Russianpresident'saideVladislavSurkov,whoissuspectedbytheUkrainianlaw 8 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 enforcersofbeinginvolvedinthemasskillingsonMaydan(Kiev'sIndependence Square),visitedUkraine(Kiev,DonetskandCrimea)atleastsixtimesfromthesummer of2013untilthelatewinterof2014,SonyaKoshkina,chiefeditorofthenewsand analysiswebsiteLB.ua,saidinherarticle“VladislavSurkov.TheUkrainianTrace”. Inaddition,accordingtoher,morethan13,000grenadeswerebroughttoUkrainein January2014undertheguiseofhumanitarianaid.Theammunitionwasprovidedto Ukraine'sInteriorMinistryandusedagainsttheMaydanactivists,thejournalistsaid. Putin'snegativeratinginUkraineover75percent TheshareofUkrainiancitizenswhohaveanegativeattitudetowardsRussian PresidentVladimirPutinhasincreasedfrom70.8to75.5percentovertheyear, accordingtoaMarchpollconductedbytheRazumkovCentre.Thenegativeattitude towardstheRussianpresidentwasexpressedbythemajorityofpeopleinallUkrainian regions. TheshareofthosewhohaveanegativeattitudetowardsRussiancitizenshasincreased overtheperiodfrom16.6to25.9percent,whiletheshareofthosewhovoiceda neutralattitudetoRussiancitizensalsogrewfrom32.5to37.1percent.Atthesame time,theshareofUkrainiancitizenswhoexpressedapositiveattitudetoRussia's citizensfellfrom44.9to28.9percent. Itshouldbenotedthat,accordingtoasurveyconductedbytheGorsheninInstitutein February,66.9percentofUkrainianssaidthattheyhadanegativeattitudetowards Russia(38.6percent-"verynegative",28.3percent-"rathernegative").However,24.7 percentoftherespondentsindicatedtheirgoodattitudetowardsRussia(9.6percent- "verygood",15.1percent-"rathergood"). UKRAINE-EU Kiev,Brussels,MoscowdiscussEU-Ukrainefreetradearea On21April2015,Ukraine,theEUandRussiaheldtechnicalconsultationsonanumber ofissuesofconcerntoMoscowwithregardtotheestablishmentofafreetradearea betweenUkraineandtheEUwithintheframeworkoftheassociationagreement,the EuropeanCommissionhassaid.Thenextstagewillincludepoliticalnegotiations. Ukraine'sambassadortotheEU,KostyantynYeliseyev,hassaidthatthetrilateral talksdidnotbringanyresults.Inhiswords,Russiaisstillworkingtodelaythe introductionoftheEU-Ukrainefreetradearea. TheEU-Ukraineassociationagreementhasenteredintolimitedforceasofearly November2014.Thetradechapteroftheagreementwilltakeeffectasofearly2016. BoththeEUandUkrainesaidtheywerenotgoingeithertorevisethetextofthe agreementonthefreetradearea,ortotakeanydecisiononitsdelay. Belgium,Portugal,FinlandratifyEU-Ukraineassociationagreement On23April2015,theBelgianFederalParliamentratifiedtheEU-Ukraineassociation agreement. ThenextdaytheratificationagreementtookeffectinFinlandandPortugal. 9 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 UkrainewantsRigasummittogiveitEUmembershipprospect UkrainewantsafinaldeclarationoftheRigaEasternPartnershipsummiton21-22 May2015togiveitaprospectofEUmembership,theUkrainianForeignMinistryhas said. KievalsohopesforadecisiongivingUkrainianstherighttotraveltotheEUwithout visasasof1January2016. TheUkraine-EUsummitwillbeheldinKievon27April. Francetosupplyhelicopters,radiocommunicationsystemstoUkraine Thestate-ownedconcernUkroboronpromhascontractedFrenchcompaniestosupply theUkrainianarmywithtacticalcommunicationmeansandsingle-enginehelicopters. ThalesSystemsAeroportesSAincooperationwiththeUkrainiansidewilldesigna patrolaircraft. LawaboutUkrainianInsurgentArmycomplicatesPolish-Ukrainianhistorical dialogue–Polishleader TheadoptionofthelawrecognizingservicemenoftheUkrainianInsurgentArmyas fightersforUkraine'sindependencewillcomplicatethePolish-Ukrainianhistorical dialogue,PolishPresidentBronislawKomorowskihassaid. ThedocumenthasnotbeensignedbytheUkrainianpresidentyet. UKRAINE-USA Ukrainian-USmilitarydrillbeginsinLvivRegion TheUkrainian-USexercise2015FearlessGuardianbeganontheYavorivtrainingrange inLvivRegionon20April2015andwilllastuntilNovember.Itsparticipantswill include900UkrainianNationalGuardtroopsand290USparatroopers. RussiahassaidthatthestayoftheUSmilitaryinUkrainewasaviolationoftheMinsk agreements. ThesecretaryoftheNationalSecurityandDefenceCouncilofUkraine,Oleksandr Turchynov,hassaidthatUSmilitaryinstructorswereinvitedinaccordancewiththe parliamentdecision.TheMinskagreementsdemandthatforeigntroops,meaning thosefromRussia,withdrawfromUkrainebecausetheyarestayingthereillegally (sinceKievhasnotpermittedtheirdeployment)andarefightingagainstUkrainian troops. UKRAINE-NATO UkrainianpresidentendorsesannualprogrammeofcooperationwithNATO On23April2015,PresidentPetroPoroshenkoendorsedthe2015national programmeforUkraine-NATOcooperation. DuringhisvisittoFrancehesaidthatareferendumonUkraine'smembershipofNATO wasplannedtobeheld. 10 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 AccordingtoasurveyconductedbytheGorsheninInstituteinFebruary,54.1percent spokeinfavourofsuchmembership,while33.1percentobjected. UKRAINE-CHILI Ukraine,Chileagreeonvisa-freetravel On24April2015,UkrainianForeignMinisterPavloKlimkinandChileanambassador JuanEduardoEguigurensignedanagreementonmutualvisa-freetravel. Chileisthe25thcountrytodropvisarequirementsforUkraine. 5.DOMESTICPOLITICAL Defenceministersaysterrorgroupssteppingupactivity AthreatofterroractsisincreasinginUkraineasterrorandsaboteurgroupshave recentlysteppeduptheirefforts,DefenceMinisterStepanPoltorakhassaid. Likelytargetsofsabotageincludedepots,basesandwarehousesofarmsand equipment,ammunitionandmissiles,hespecified. Meanwhile,theSecurityServiceofUkraine(SBU)saidthatpro-Russianforceswere likelytotrytoestablishanotherself-proclaimedrepublicinOdessainearlyMay,on theanniversaryofthetragiceventsinthelocalTradeUnionHouse,whenalmost50 peopledied. SaboteursblowuprailwaybridgeinLuhanskRegion AnexplosionunderadieselshuntertookplaceattheShypylove-Sentyanivkarailway runinLuhanskRegionon25April2015.Tworailwayworkerswereinjured,police said. Prosecutorsdisclosecauseofpeople'sdeathinOdessa'sTradeUnionHouseon 2May Forty-eightpeoplediedinOdessa'sTradeUnionHouseon2May2014afterthe buildingquicklycaughtfire,theProsecutor-General'sOffice(PGO)hassaid. Itsaidthatnoproofofdeliberatearsonwasfoundandthatthefirewascausedbythe useofpetrolbombs. Itaddedthat22werechargedwithintheframeworkofthe2Maycasewhile13 organizersandparticipantsintheriotsarewanted. MinersprotestinKiev,EnergyMinistrypointsfingeratAkhmetov SeveralhundredminersheldprotestsincentralKievon22-24Aprildemandingthat theirwagearrearsbepaidandEnergyMinisterVolodymyrDemchyshynbe dismissed. Attheminers'assemblyinKievon21April,theirtradeunionleaderMykhaylo VolynetssaidthattheEnergyMinistry'sunprofessionalactionsresultedinoneofthe deepestcrisesintheindustryovertheyearsofindependence. 11 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 DemchyshynrespondedbysayingtheprotestswereorganizedbybusinessmanRinat Akhmetov. PetroPoroshenkoBlocMPMustafaNayemhasmadepublictheplan,calledFortress, which,ashesaid,wasdevelopedbyAkhmetov'smanagerstoretainDTEK's monopolyintheenergymarket.Itoutlinesthewaystoinfluencetheauthorities,in particularbyholdingminers'protestsandassemblies. DTEKdismissedthedocumentandsimultaneouslyaccusedDemchyshynofputting pressureonthecompany. PresidentPetroPoroshenkoinstructedlawenforcerstoinvestigatetheplanmade publicbyNayem.Theheadofstatesaidhewouldnotallowoligarchstodestabilize thesituationinUkraine. Ukraine'ssecurityserviceopenscaseonfinancingofminers'protests On24April2015,theSecurityServiceofUkraine(SBU)registeredacriminalcase overfinancingofanattemptedseizureofpowerduetotheorganizationofminers' protestson22-24April. Itsaidthatithaddocumentedcriminals'attemptstousetheseprotestsasleverage againsttheauthoritiesforthepurposeofitsfurtherdestabilizationandseizure.In particular,ithasproofthattheperpetratorspaidandarrangedfortheprovocateurs' arrivalinthecapitalandtheirparticipationintherallies. TheSBUsummonedDTEKmanagersforinterviewsandusedthedocuments publishedbyMPMustafaNayem. UkrainianMPsaysAkhmetovsubjecttocaseonfinancingofterrorism CriminalproceedingshavebeenopenedagainstUkrainianbusinessmanRinat Akhmetovoverfinancingofterrorismandseparatism,PetroPoroshenkoBlocMP YehorFirsovhassaid. HeaddedthatAkhmetovhadalreadybeeninterviewedaboutthecasebythe Prosecutor-General'sOffice. Akhmetov'spressservicedeniedthisinformation. HireddemonstratorsdemandKievmayor'sdismissal-media ArallydemandingKievmayorVitaliyKlitschkotostepdownwasheldinKievon23 April2015. Aftertheendoftherally,itsparticipantswerepaid80hryvnyas,or3.5dollars,the newsandanalysiswebsiteLB.uahasquotedthemassaying. AccordingtotheSecurityServiceofUkraine(SBU),therallywaspaidforbyformer PrimeMinisterMykolaAzarov. UkrainianpresidentsetsupcommissiontoselectcandidatestoSupreme JusticeCouncil On21April2015,UkrainianPresidentPetroPoroshenkosetupacommissionto 12 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 shortlistcandidatestotheSupremeJusticeCouncil. On25April,thelawyers'assemblyinKievtoselectmembersoftheSupreme JusticeCouncilstartedwithouttheKievdelegationwhichwasblockedfrom attendingbyunidentifiedindividuals.Thedelegateselectedtwooutofthree representativesundertheirquota.TheseareAllaLeskoandPavlo Hrechkovskyy. Accordingtosomemediareports,theyareconnectedtotheleaderoftheproRussianNGOUkrainianChoice,ViktorMedvedchuk,andaformerdeputyhead ofViktorYanukovych'spresidentialadministration,AndriyPortnov. Inparticular,theSupremeJusticeCouncilisauthorizedtoappointanddismiss judges. CabinetannouncescompetitionforheadofUkraine'santicorruption agency On23April2015,theCabinetofMinistersofUkraineannouncedacompetition toselectaheadoftheNationalAgencyforCorruptionPreventionwhichwillkeep theregisterofofficials'incomeandspendingstatements. Ukrainianparliamentpostponesentryintoforceoflawonprosecution On21April2015,theUkrainianparliamentpostponedentryintoforceofthe newlawonprosecutionuntil15July2015.Thelawshouldhaveenteredinto forceon25April. PetroPoroshenkoBlocfactionheadYuriyLutsenkoexplainedthatnotall prosecutionbodiesarereadyfortheinnovations. Parliamentpassedthelawon14October2014.Oneofitskeypointsisthatit stripsprosecutionbodiesofthegeneralsupervisionfunction. UkrainianparliamentexemptsdefenceproductsfromVAT,duties On23April2015,theUkrainianparliamentexemptedfromtaxthespares importedintothecountryfortheirfurtheruseduringthemanufacturingof defenceproducts. Ukrainianscientiststobepaidspecialpensionsagain On21April2015,theUkrainianparliamentpassedalawre-entitlingscientiststo specialpensionsiftheycontinuedintheirjobsuponreachingthepensionage. Thedocumentseekstostoptheoutflowfromresearchinstitutionswhichstarted afterthelawlimitingpensionswasadoptedinMarch. ParliamentsetsupspecialcommissionondevelopmentofUkraine On22April2015,parliamentsetupaspecialcommissiontaskedwithdesigning astrategyfortheinnovativedevelopmentofUkraine. ItwillbeheadedbySelf-HelpMPOleksiySkrypnykandhisdeputywillbe unaffiliatedMPSerhiyTaruta. 13 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 UkrainianparliamentamendslawbanningpropagandaofNazism,Communism On23April2015,theUkrainianparliamentapprovedamendmentstothelaw banningtheNaziandCommunistpropaganda. Thelawwasamendedtoeliminatetheearlierrevealeddiscrepancies.Inparticular, accordingtothenewwording,thebanonCommunistsymbolsdoesnotapplyto documentsissuedbyauthoritiesandlocalgoverningbodiesbefore1991,original armycolours,stateawardsandheadstones. AuditChambertooverseebudgetreceipts On24April2015,PresidentPetroPoroshenkosignedthelawauthorizingtheAudit Chambertooverseestatebudgetreceiptsinadditiontoexpenditures. Ukrainianpresidenttightenspunishmentformilitarycrimes On23April2015,PresidentPetroPoroshenkosignedthelawtightening punishmentformilitarycrimes.Thedocumentintroduceslongersentencesfor bullying,violence,disciplineabuseandmisuseofarms. ThesamedayPoroshenkosignedthelawreleasingstudents,post-graduateandPhD studentsfrommobilizationservice. Self-HelpMPgivesupseat ASelf-Helpfactionmemberandthesecretaryofthecommitteeforveteransand peoplewithdisabilities,AndriyMiroshnyk,hasannouncedthatheisgivinguphis seatafterjournalistsmadepublicaseriesofhistextsdiscussingaleisuretourofthe Maldivesworth234,000hryvnyas,or10,200dollars. ItwasalsoreportedthatMPFedirNehoydecidedtoleavethePetroPoroshenkoBloc faction. Courtarreststhreeex-BerkuttroopsovershootingofMaydanactivists On23April2015,theKievPecherskyydistrictcourtarrestedthreeformermember oftheBerkutriotpolicesuspectedofshootingdownEuro-Maydanprotesterson IndependenceSquareinFebruary2014. Statereclaims43.5mdollarsworthoflandlostduringYanukovychrule Theprosecutor'sofficesofKievandtheregion,Volyn,ZhytomyrandOdessaregions havereturnedintostateownership1bnhryvnyas(43.5mdollars)worthoflandplots appropriatedbyformerofficialsoftheViktorYanukovychgovernment,the Prosecutor-General'sOfficesaidon22April2015. Lawsuitswithregardtolandplotsworth8.2bnhryvnyas(357mdollars)arebeing heardbycourts. SonofformerDonetskregionalgovernoraccusedoffinancingseparatists TheInteriorMinistryhasclampeddownonacrimeringheadedbyOleksiy Blyznyuk,thesonofaformerPartyofRegionsMPandex-governorofDonetsk Region,AnatoliyBlyznyuk,InteriorMinisterArsenAvakovsaidon23April2015. 14 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 AccordingtoAvakov,forseveralmonthsnowpolicehavebeeninvestigatingtheillegal saleofcoalextractedinLuhanskandDonetskregionsintheareasnotcontrolledbyKiev. Courtacquitsex-PartyofRegionsmemberLandik TheSvatovedistrictcourtofLuhanskRegionhascancelledtheverdictagainstRoman Landik,whowasaccusedofbeatingMariyaKorshunova,andacquittedhim. RomanisthesonofformerPartyofRegionsMPVolodymyrLandik.Thecourtissued thisrulingbackon4Februaryhoweverittranspiredonlynow.Prosecutionappealedthe ruling. InJanuary2013,acourtgaveLandikasuspendedthree-yearsentence. 6.MEDIA TVichannelgoesbackonair TheTVchannelTVi,whichsuspendedbroadcastson23March,willgobackontheairas of27April2015. TheTVchannelexplainedthesuspensionwiththedifficulteconomicsituationinthe stateandthefactthatitwassubsidized. 7.ECONOMY IMFtosupportUkraineinrestructuringefforts TheInternationalMonetaryFund(IMF)haswelcomedtheimplementationofreformsin UkraineandwillfacilitatethecompletionofthenegotiationsbetweenUkraineandits creditorsonrestructuringpartoftheformer'sdebt,theIMFhassaidinastatement. Ukrainebeganthenegotiationsonrestructuringpartofitspublicdebtintheamountof 15.3bndollars(withthetotalnationaldebtstandingat70bndollars)inearlyMarch, aftertheIMFapprovedanewprogrammeof17.52bndollars. Bytheendoftheyear,Kievwillhavetopay5.2bndollarsonitsEurobondsand municipalbonds,ifthecreditorsdonotagreetotherestructuring. TheIMFmissionwillarriveinKievon29Maytoperformthefirstreviewofthe ExtendedFundFacility(EFF)programme,followingwhichUkrainemayreceivethe secondtrancheworth1.63bndollars. EUdisburses250meurostoUkraine TheEuropeanCommissionon21Aprilallocatedthelasttrancheof250meurosto UkraineundertheMacro-FinancialAssistance(MFA)programmeworth610meuros. ItshouldberecalledthattheEUadoptedanewmacro-financialaidprogrammeof1.8bn euros.Thefundswillbeallocatedinthreetranchesof600meuroseach.Thefirsttranche isexpectedinthecomingdays. Ukrainetoraise2bndollarstorebuildDonbas,Poroshenkosays Ukrainehasagreedraising2bndollarsofinternationalassistancetorebuildthe 15 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 infrastructureinDonbas,PresidentPetroPoroshenkohassaid. On28April,KievwillhostaninternationalconferenceinsupportofUkraine. Parliamentapproves200m-euroloanagreementwithEIB TheUkrainianparliamenton22AprilratifiedtheagreementbetweenUkraineand theEuropeanInvestmentBank(EIB)ontheallocationofa200meurosloanto Kiev.Theloanrepaymentperiodis20years. ThefundingwillbeprovidedtoaddresstheneedsoftheDonbasareasaffectedby thehostilitiesandtoimplementinfrastructureprojectsforinternallydisplaced persons. TheagreementwassignedinKievon22December2014byPrimeMinister ArseniyYatsenyukandEIBVice-PresidentLaszloBaranyay. USloanguaranteesforUkrainianEurobondstakeeffect USloanguaranteesforthesecondtrancheofUkrainianEurobondsworth1bn dollarscameintoforceon24April. ItshouldbenotedthatUSVice-PresidentJosephBidenearliersaidthat Washingtonwasreadytoprovidenew1bndollarloanguaranteestoKievin2015, aswellasadditionalmilitarysupport. Inaddition,thepoliticiansaidthattheUSAwillsendhumanitarianaidof17.7m dollarsforUkraine'sinternallydisplacedpersons. UkrainesignsroadmapwithOECD Ukraine,representedbyEconomyMinisterAivarasAbromavicius,on22April signedaroadmapfortheimplementationofthememorandumonstrengthening cooperationwiththeOrganizationforEconomicCooperationandDevelopment, whichisalsoknownasthe“clubofrichnations”. Ukraine'sforexreservesupto10bndollars Ukrainehasmanagedtoincreaseitsinternationalreservesto10bndollarsowing tothe4.9bndollarloandisbursedbytheInternationalMonetaryFundinMarch 2015,Ukraine'scentralbankhasreported. Balanceofpaymentsdeficitexceeds300mdollarsinMarch ThedeficitoftheconsolidatedbalanceofpaymentsinMarch2015amountedto 305mdollars,or101mdollarsmorethaninMarch2014,accordingtotheNational BankofUkraine. IndustrialrecessionslowsinMarch Ukraine'sstatisticsagencyhasreportedthatindustrialproductioninMarch2015 contractedby21.1percentcomparedtoMarch2014.However,againstFebruary 2015,industrialoutputincreasedby9.6percent. 16 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 Ukrainianbankspost3.5bndollarsinlosssinceyearstart LossesinUkraine'sbankingsysteminthefirstquartertotalled80.9bnhryvnyas (3.5bndollars),accordingtotheNationalBank. PrivatizationtargetstobeevaluatedbyFrenchexperts-president State-ownedenterprisesthatUkraineintendstoprivatizethisyearwillbereviewed bytheFrenchexpertiseagency,UkrainianPresidentPetroPoroshenkosaidatajoint pressconferencewithhisFrenchcounterpartFrancoisHollandeinParis. Earlier,Ukraine'sEconomicDevelopmentMinisterAivarasAbromaviciusannounced thedecisiontoprohibitRussianbusinessfromparticipatingintheprivatization. AtlasjetpermittedtoperformcharterflightsfromLviv Low-costairlineAtlasjetUkraine,asubsidiaryofTurkey'sAtlasGlobal,hasreceived thegreenlighttoperformcharterflightsfromLvivtoBulgaria'sBurgas,Montenegro's TivatandCroatia'sSplit,Ukraine'sstateairservicehasreported. ItisalsoreportedthatUkraineon16AprilheldtalksinAshgabatwiththeTurkmen airservice,duringwhichthesidesagreedtoresumedirectflightsbetweenKievand Turkmenistan'scapitalfromMay,aswellastolaunchflightsfromTurkmenistanto LvivandOdessa. 8.ENERGY UkrainereceivesgastransitordersfromEUtraders Thestate-runenergycompanyNaftohazUkrayinyanditssubsidiaryUkrtranshaz havereceivedapplicationsfromEUnaturalgastradersforarranginggasflows throughUkrainebetweenHungary,Poland,Bulgaria,GreeceandTurkey,buttheir fulfilmentisimpededbytheanti-competitivebehaviourofRussia'sGazprom, Naftohazhassaid. Inaddition,theUkrainiancompanynotedthattheRussiangasmonopolyhindersthe interconnectionofUkraine'andneighbouringEuropeancountries'energysystemsby blockingvirtualreverse-flowgassuppliesbetweenUkraineandWesternpartners. Atthesametime,NaftohazexpressedhopethattheEuropeanCommission'sfiling antitrustchargesagainstGazpromwillunlocktheseissues. Also,thegovernmentrequestedtheUkrainianantitrustagencytolaunchan investigationagainstGazprom,which,accordingtothecabinet,harmstheUkrainian economybyitsnon-competitiveactions. GasimportsfromEuropereach61percentinfirstquarter NaftohazUkrayiny,astate-runenergycompany,hasreportedthatnaturalgasimports fromRussiainJanuary-March2015accountedfor39percentofthetotalgasimports inUkraine,against74percentduringthesameperiodof2014. Theother61percentofgasimportstoUkrainecamefromEuropeinthefirstquarter. InJanuary-March2014,theshareofEuropeansupplieswasonly26percent. 17 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 Currently,NaftohazimportsgasfromSlovakia,HungaryandPoland.Also,Ukraine resumedgassupplynegotiationswithRomania. TrilateralgroupnottodiscusspaymentsforDonbasgassupplies–minister ThequestionofpaymentsforRussia'snaturalgassuppliestoDonbaswillbediscussed beyondtheregulartripartitenegotiationsofUkraine,RussiaandtheEuropean Commission,accordingtoUkrainianEnergyMinisterVolodymyrDemchyshyn. Meanwhile,Gazpromsuggestedenteringintoaseparatecontractforthesupplyofgas totheoccupiedterritories.However,NaftohazUkrayiny,astate-runenergycompany, saidthattherewasnosenseindoingso. Aswasreported,RussiawithoutconsentfromtheUkrainiansideissupplyinggasto theDonbasterritoriesnotcontrolledbytheUkrainiangovernment.Inaddition, GazpromexpectsthattheUkrainiansidewillpayforthegassuppliestotherebel-held areas.AccordingtoRussia'sestimates,Naftohazowes174.2mdollarsforthegas suppliedtothepro-Russianrebels. Ukrainestopspayingelectricitybillsforrebel-heldpartsofDonbas Startingfrom10April,Ukrainedoesnotmakepaymentsfortheelectricitythatcomes fromRussiatotheDonbasterritoriesnotcontrolledbytheUkrainiangovernment, EnergyMinisterVolodymyrDemchyshynhassaid. HealsonotedthatUkrainecontrolledonly35of95coalminesinDonbas. Presidentapprovescabinet'srighttoregulateelectricitymarketinATOarea PresidentPetroPoroshenkoon24Aprilapprovedamendmentstothelawonelectric powerindustryconcerningindustryregulationsintheantiterroristoperation(ATO) zone.Earlier,theseamendmentswerepassedbytheUkrainianparliament. ThenewchangesgranttheauthoritytotheUkrainiangovernmenttoestablishspecial regulationsinthementionedterritories. Ukrtransnafta'sheadreplacedagain ThesupervisoryboardofUkrtransnafta,astate-runcompany,on22Aprilappointed RomanSydorakasactingboardchairmanofthecompany. SydorakisthethirdheadappointedinplaceofOleksandrLazorko,whoisaffiliated withPrivatGroupofIhorKolomoyskyy.Earlier,YuriyMiroshnykandSerhiySukalo werenotabletotakeuptheirdutiesduetotheinterferencefromKolomoyskyy. Accordingtomediareports,thecompaniescontrolledbyKolomoyskyyinMarch-April received120mhryvnyas(5.2mdollars)fromUkrtransnaftaforoilstorageservices. NaftohazdeclinesUkrnafta'soffertooffsetdividendsagainstdebts Thestate-runenergycompanyNaftohazUkrayinyhasrejectedtheproposalfrom Ukrnafta,Ukraine'slargestoilcompany,tooffsetthe2011-13dividendsagainstthe formercompany'sdebts,NaftohazCEOAndriyKobolevhassaid. Accordingtohim,NaftohazisintalkswithPrivatGroupwithregardtochannelling 18 ©GorsheninInstituteApril2015Allrightsreserved INTHESPOTLIGHT ISSUE57(220) 04/27/2015 thesefundstothestatebudgetincash. Since2003,Ukrnafta,inwhichthegovernment(representedbyNaftohazUkrayiny) owns50percent+oneshare,hasbeenrunbythemanagersaffiliatedwithPrivat GroupofIhorKolomoyskyy. EnerhoatomsignscontractforuraniumsuppliesfromFrance Enerhoatom,thenationalnuclearpower-generatingcompany,andFrance'sAreva havesignedacontractforthesupplyofenricheduraniumforUkrainiannuclear powerplants. Itshouldberecalledthatbefore2011,nuclearfuelforUkrainiannuclearpower plantswassuppliedonlyfromRussia.Currently,severalnuclearpowerplants receivefuelfromWestinghouseElectricCompany(USA). UkrainehonoursmemoryofChernobyldisasterliquidators Ukraineon26Aprilheldeventsmarkingthe29thanniversaryoftheChernobyl disaster. ItshouldbenotedthatcurrentlyUkraineiscompletingtheconstructionofa confinement("Shelter"project)abovetheChernobylnuclearpowerplant.Itis expectedthattheprojectwillbecompletedby30November2017. Theconstructioncostis1.43bneuros.Ukraineneedstoraiseanother500meurosin donorfunds. FoundedinJuly2010,GorsheninWeeklyisaweeklydigestofexpertanalysiscovering themostimportantpolitical,socialandeconomiceventsinUkraine.Itisthekey sourceofinformationaboutopinionpollscarriedoutbytheGorsheninInstituteas wellasthebestprofessionalcommentariesonrecentdevelopments. GorsheninWeeklyisavailableinRussianandEnglish. GorsheninWeeklyhasover700subscribersintheEU,theUSA,Russia,Ukraineand othercountries.Itsregularcustomersarerepresentativesoftheembassies,the EuropeanCommission,theEuropeanParliament,theUSDepartmentofState,leading internationalanalyticalcentres,Ukrainianandinternationalmassmedia. IfyouwishtosubscribetoGorsheninWeeklypleasesendyourrequesttothefollowing e-mailaddress:[email protected]. 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