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CONTENT
1.Topnews…page5
2.ArmedconflictinUkraine`seast…page5
Pro-RussianseparatistslaunchattackonDonbastowns
OSCEobserversattackedbymilitantsinLuhanskRegion
DeathtollinDonbasexceeds6,300people,UNsays
DonbascontactgroupholdsmeetinginMinsk
OSCEspecialenvoyinMinsktalkstoresign
UkrainianpresidentrulesoutnationalreferendumonDonbasseparation
BlasthitscoastguardboatnearMariupol
3.Crimeanissue…page7
CrimeanTatarsdeniedrighttocelebrateNationalFlagDay
RussianjuryhanddownverdicttosonofCrimeanTatarleader
4.Internationalpolitical…page8
Ukraine-Russia
RussialaunchesnewmilitarydrillsalongUkrainianborder
RussianspecialunitoperativetransferredinUkrainiandetentionfacility
Ukrainiansecurityserviceholds53Russiancitizenscriminallyliable
Ukrainiansecurityserviceopenscriminalcaseoverabductionof
Ukrainiancitizen
UkrainianauthoritiesenactlawbanningRussian-madefilms
Ukraine-EU
RussiademandsUkrainepostponetransfertoEUtechnicalregulationsby
10years–media
EUtoextendsanctionsagainstCrimea
EUextendsassetfreezesforthreeUkrainianex-officials
EuropeanParliamentrollsoutsanctionsinresponsetoRussia's"black
list”
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Ukraine-USA
Ukrainian-USmilitarynavalexerciseheldinBlackSea
Ukraine-Canada
Canadaallocates4mdollarsforUkrainianpatrolpolice
Ukraine,Canadainconsultationsonvisaliberalization
Ukraine-world
UkrainianpresidentappointsenvoystoSerbia,Kyrgyzstan
5.Domesticpolitical…page11
Parliamentauthorizespeacekeepers'entrytoUkraine
Ukrainianparliamentshortensperiodofdefenceplanning
Ukrainianparliamentapprovesplanoflegislativesupportforreforms
TwoUkrainianMPsstrippedofimmunity
SpecialpensionsforUkrainianofficialscancelled
Ukrainianpresidentdeniesconfidentialagreementswithcontroversial
tycoon
HeadofUkraine'smigrationservicedismissed
Kievpolicechiefdismissed
Ukrainiandefenceministerdismisseschiefprocurementofficer
UkrainiancabinetsuggestsdismissalofDonetskregionalgovernor
6.Economy…page13
IMFmissioncompletesitsworkinUkraine
JapantogiveUkraine1.5bn-dollarloanguarantees
Foreignexchangereservesgrowby3percent
EBRD,IMFworseneconomicoutlookonUkraine
InflationinMayslowsto2.2percent
Centralbankextendscurrencyrestrictionsforthreemonths
NationalBankliquidatesNadrabank
UkraineresumesexportsofOplottanks
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CourtarrestspropertyofFirtash'sOstchem
7.Energy…page15
BrusselshostsUkraine-Russia-EUexpert-leveltalksongasissues
PresidentgivesNaftohazgreenlighttorecoverdebtsfromconsumers
UkraineresumesgasimportsfromHungary
CourtoverturnsdismissalofUkrtransnaftahead
Parliamentcuts"greentariff"forsolarpowerplants
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1.TOPNEWS
Pro-RussianseparatistscontinueshellingpositionsofUkrainianmilitary
TheylaunchedthebiggestoffensivenearthetownsofMaryinkaand
Krasnohorivka.
YoucanfindmoredetailsinthesectionARMEDCONFLICTINUKRAINE'SEAST.
Ukrainianparliamentauthorizesaccessforforeignpeacekeepers
ThespokespersonoftheRussianpresidenthaswarnedthattheKremlinmight
useforceabroadduetothedecisionoftheUkrainianVerkhovnaRada.
YoucanfindmoredetailsinthesectionDOMESTICPOLITICAL.
EBRD,IMFforecastUkraine'sGDPfallby9percent
JapanwillgrantUkrainea1.5bn-dollarloan.
YoucanfindmoredetailsinthesectionECONOMY.
2.ARMEDCONFLICTINUKRAINE'SEAST
Pro-RussianseparatistslaunchattackonDonbastowns
Pro-RussianseparatistscontinuetoattackUkrainianpositionsusingweapons
whichhavebeenbannedbytheMinskagreements,suchasGradmultiplerocket
launchers.
Theylaunchedthebiggestoffensiveon3June,nearthetownsofMaryinkaand
Krasnohorivka,whicharelocatedwestofDonetsk.TheUkrainianmilitarysaid
thattheywereabletorepeltheattackbutwereforcedtoreturnheavyartillery
totheirfightingpositions.
TheUNhasreportedthat28peoplehadbeenkilledasaresultoftheseclashes.
Nineofthemwerecivilians.
Expertsbelievethatthemostrecentfighting,theworstsinceFebruary,
representsthemostseriousviolationoftheMinskagreements.
UkrainianPrimeMinisterArseniyYatsenyuksaidthatRussiahaddeliberately
“ordereditsterroriststolaunchamilitaryoperation”aheadoftheG7summit.
On5June,theUNSecurityCouncilheldanextraordinarymeetingtodiscussthe
deteriorationofthesituationinUkraine.
OSCEobserversattackedbymilitantsinLuhanskRegion
Pro-Russianseparatistson7JuneopenedfireonobserversfromtheOSCEand
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theJointCentreforControlandCoordinationofCeasefireandStabilizationof
theLineofContactnearthetownofShchastya,LuhanskRegion,the
antiterroristoperationpresscentrehasreported.
Nocasualtieswerereported.
DeathtollinDonbasexceeds6,300people,UNsays
SincethebeginningofthearmedconflictineasternUkraineinthemiddleof
April2014andasof15May2015,6,360peoplehavebeenkilledinDonbasand
15,780havebeenwounded,theUNhasreported.
UNexpertsestimatethatthenumberofinternallydisplacedpeoplehasreached
1.2million.Atthesametime,casesofshelling,execution,illegaldetention,
tortureandhumantraffickingareobservedintheareaofconflictpopulatedby
5millionpeople,theUNadded.
Wewouldliketopointoutthataccordingtoinformationatdisposalofthe
SecurityServiceofUkraine(SBU),asof3June,1,180peopleareconsidered
missinginDonbas.
DonbascontactgroupholdsmeetinginMinsk
On2June,representativesofthetrilateralcontactgroupforsettlementofthe
conflictinDonbas(Ukraine,theOSCEandRussia)anditsfoursubgroups
conductednegotiationsinMinsk.
RussianrepresentativeAzamatKulmukhametovlefttheroomwherethe
groupconvened,whichderailedthemeeting,theInterfax-Ukrainenewsagency
hasquoteditsownsourceassaying.
OSCEspecialenvoyinMinsktalkstoresign
ThespecialrepresentativeoftheOrganizationforSecurityandCooperationin
Europe's(OSCE's)chairperson-in-officeinUkraine,HeidiTagliavini,plansto
stepdownfromherroleasOSCErepresentativeintalksbetweenUkraine,
Russiaandpro-RussianmilitantsinUkraine'sDonbas.
Aspreviouslyreported,sherepresentedtheOSCEinthetrilateralcontactgroup
forsettlementoftheconflictinDonbas.
TheUkrainianforeignministerbelievesthatthechangeoftheOSCE
representativemayslowdowntheMinskdialogue.
Theresignationmighthavetodowiththederailmentofthenegotiationson2
June,theRussiannewsagencyInterfaxhasquoteditssourceinthetrilateral
groupassaying.
UkrainianpresidentrulesoutnationalreferendumonDonbasseparation
UkrainianPresidentPetroPoroshenkohassaidthathewillnotallowa
referendumonDonbasseparationfromUkraine.Theheadofstatemadethis
statementatanewsconferenceon5June,thenextdayafterhisannualaddress
toparliament.
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Atthesametime,hedidnotruleoutthepossibilityoforganizingareferendum
onthestatusofDonetskandLuhanskregionswithintheterritoryofUkraine.
ThepresidentalsonotedthatKievwasreadytorestoreeconomictieswiththe
temporarilyoccupiedterritoriesinDonbasundertheconditionthatthe
UkrainianauthoritiesregaincontrolovertheUkrainian-Russianborder.Heruled
outeconomiccooperationwithpro-Russianmilitants,aswellasUkraine'sand
Westernparticipationinthereconstructionofterritoriescurrentlyheldby
separatists.
PoroshenkoalsosaidthatiftheUkrainianauthoritiesfailtoregaincontrolover
theUkrainian-Russianborder,theywillbeforcedtotightenbordercontrolonthe
demarcationlineinDonbas.
BlasthitscoastguardboatnearMariupol
AUkrainiancoastguardcutteron7Junehitanimprovisedexplosivedeviceinthe
AzovSeaoffthecoastofMariupol,theantiterroristoperationpresscentrehas
reported.Accordingtothestatement,thedevicewasplantedbypro-Russian
militants.
Therewereeightpeopleonboardatthetimeoftheincident;oneofthemwas
killed.
Earlier,on31May,afishermanaccidentallydetonatedanexplosivedevice
floatinginthewaternearMariupol.
3.CRIMEANISSUE
CrimeanTatarsdeniedrighttocelebrateNationalFlagDay
TheSimferopolcityauthoritieshavedeniedtheorganizingcommitteeofthe
CrimeanTataryouthtomarkCrimeanTatarNationalFlagDayon26June.
Weshallremindyouthatthecityadministrationhaddeniedtheself-styled
CrimeanTatargovernmentMajlispermittoholdarallyinthecitycentreto
commemoratevictimsofdeportationon18May.
Wewouldliketopointoutthaton4Juneunidentifiedindividualstoredowna
CrimeanTatarflagfromtheMajlisbuilding,aswellasaplaqueneartheentrance
tothebuilding,andsurveillancecameras.
TheUNhasreportedthatthesituationinCrimea“remainsalarmingandsuch
thatwecancharacterizeitbyhumanrightsviolationscommittedbydefacto
authorities,whoapplylegislationoftheRussianFederation”.Theorganization
paidspecialattentiontoviolationsofrightsoftheCrimeanTatars.
RussianjuryhanddownverdicttosonofCrimeanTatarleader
TheRussianjuryhasdecidedthatasonoftheCrimeanTatarleaderand
UkrainianMPMustafaDzhemilyev,Khayser,isnotguiltyofmurdermotivated
byhooliganism.Atthesametime,itfoundhimguiltyofillegalpossessionof
weaponsandammunition,aswellasmanslaughter.Hefacesuptosevenyearsin
prison.
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TheverdictisthesameastheoneissuedbyaUkrainiancourtinMay2015.
Weshallremindyouthaton27May2013KhayserDzhemilyevkilledafamily
member,FevziEdemov,asaresultofnegligenthandlingofweapons.Attheendof
September2014,theRussianauthoritiesillegallytransferredhimfromaCrimean
detentionfacilitytoRussianKrasnodarRegion.
4.INTERNATIONALPOLITICAL
UKRAINE-RUSSIA
RussialaunchesnewmilitarydrillsalongUkrainianborder
RussianSu-25attackaircraftunitsoftheSouthernMilitaryDistrictairbasehave
launchedmilitaryexercisestopracticehowtoovercome“enemyairdefences”,the
Russian Defence Ministryreportedon2June.
Wealsolearnedthatlarge-scalemilitarydrillsareconductedalongtheUkrainian
borderbyBelarus.
WewouldliketopointoutthatUkrainianPresidentPetroPoroshenkosaidthat
themassingofRussiansoldiersalongtheUkrainianborderwasthelargestsince
August2014.HeaddedthattheriskofRussia'sdirectinvasioninUkrainewas
extremelyhigh.
RussianspecialunitoperativetransferredinUkrainiandetentionfacility
On3June,anoperativeoftheMainIntelligenceDirectorateoftheGeneralStaffof
theRussianArmedForces,YevgeniyYerofeyev,wastransferredfromaKiev
militaryhospitaltoaremandcentre.
ItisplannedthattheseconddetainedRussiansoldier,AleksandrAleksandrov,
willalsobetransferredtoaremandcentresoon.
ThetwoRussiansweredetainednearthetownShchastyainLuhanskRegionon16
May.AUkrainiansoldierwaskilledintheclash.AUkrainiancourtruledtokeep
theRussiansoldiersindetention.Theymayfaceterrorismcharges.
Ukrainiansecurityserviceholds53Russiancitizenscriminallyliable
TheSecurityServiceofUkraineholds53Russiancitizenscriminallyliableandhas
openedcriminalcasesagainstthemajorityofthemovercommittingterroristacts.
Tencaseswereconsideredbycourts,whichhavealreadyhandedverdicts.
Twenty-eightRussiannationals,includingaformerdefenceministerofthe
Donetskpeople'srepublic,IgorGirkin,andotherleadersoftheself-proclaimed
DonetskandLuhanskpeople'srepublicshavebeenplacedonthewantedlist.
UkrainiansecurityserviceopenscriminalcaseoverabductionofUkrainian
citizen
TheSecurityServiceofUkrainehaslaunchedaninvestigationintothetrumpedup
chargespresentedtoUkrainianmilitarypilotandMPNadiyaSavchenkobythe
RussianFederalSecurityServiceandtheRussianInvestigationsCommittee.
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UkrainianauthoritiesenactlawbanningRussian-madefilms
On4June,theUkrainianauthoritiesstartedtoimplementalawwhichbans
broadcastsofRussianmovieswhichhadbeenmadeafteraRussianactof
aggressionagainstUkraineon1January2014.
ThedocumentalsobansbroadcastsofmoviesinUkrainewhichpromote
Russianlaw-enforcementagenciesandSovietsecurityagencies,whichwere
madeafter1August1991,regardlessofwherethefilmswereproduced.
UKRAINE-EU
RussiademandsUkrainepostponetransfertoEUtechnicalregulationsby
10years–media
ThefirsttechnicalconsultationsofexpertsfromUkraine,theEUandRussia
regardingcertainaspectsoftheimplementationoftheEU-Ukrainefreetrade
areaagreementtookplaceinBrusselson4-5June2015.
Ukraine'srepresentative,DeputyTradeMinisterNataliyaMykolska,saidafter
thetalksthatRussiawasnotconstructive.
AccordingtoUkrainianmediareports,insteadofofferinganythingspecific,the
Russiandelegationsuggestedthattheenactmentofalltechnicalregulations
adaptedtotheEUstandardsbepostponedby10years.
ThenextroundoftalkswillbeheldinlateJune.
EUtoextendsanctionsagainstCrimea
TheCounciloftheEuropeanUnionon5June2015madeapoliticaldecisionto
extendsanctionsagainstCrimeaforanotheryear.Thedecisionwillbe
formalizedinawhile,theCounciloftheEU'spressservicehassaid.
ThesanctionsincludethebanontheimportofCrimeangoods,exportofgoods
andtechnologiesfortransport,telecommunicationandenergydevelopmentto
Crimea,andinvestmentinthepeninsulathroughpurchaseofrealestateand
othermeasures.
TheAFPnewsagencyquoteditssourcesassayingthatatitsJunesummitthe
EUwillprolongthesanctionsagainstRussiabyanotheryearduetoitsmilitary
aggressionagainstUkraine.
EUextendsassetfreezesforthreeUkrainianex-officials
TheCounciloftheEuropeanUniondecidedon5June2015toextendtheasset
freezeandentrybansforformerUkrainianJusticeMinisterOlenaLukash,
formerEducationMinisterDmytroTabachnykandMPSerhiyKlyuyev.The
measuresareextendedbyninemonthsforLukashandTabachnykandbyfour
monthsforKlyuyev.
Theex-president'syoungerson,ViktorYanukovychJr,wasexpelledfromthe
sanctionlistduetohisdeath.
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Italsotranspiredthatex-PresidentViktorYanukovychandhiselderson
OleksandrappealedagainsttheEUdecisiononsanctionsagainstthemforthe
secondtime.
TheEUrestrictivemeasuresnowapplyto17formerUkrainianofficials.
EuropeanParliamentrollsoutsanctionsinresponsetoRussia's"blacklist"
On2June2015,EuropeanParliamentPresidentMartinSchulzannounced
suspendingtheparliament'sengagementwiththeEU-Russiaparliamentary
cooperationcommittee,restrictingfreeaccesstoparliamenttotheRussian
ambassador,andassessingrequestsforaccessbymembersoftheDumaandthe
FederationCouncilonacase-by-casebasis.
Thesanctionswereintroducedfollowingthepublicationoftheblacklistof89
EuropeanpoliticiansbannedfromenteringRussia.
UKRAINE-USA
Ukrainian-USmilitarynavalexerciseheldinBlackSea
TheUkrainianfrigateHetmanSagaidachnyandtheUSNavydestroyerUSSRoss
heldajointexerciseintheBlackSeaon1-2June2015.
UKRAINE-CANADA
Canadaallocates4mdollarsforUkrainianpatrolpolice
Canadahasdecidedtoallocate5mCanadiandollars(4mUSdollars)foran
initiativetotrainanewUkrainianpatrolpoliceforce,UkrainianPrimeMinister
ArseniyYatsenyuksaidafterameetingwithhisCanadiancounterpartStephen
HarperinKievon6June2015.
Thenewpatrolforce,whichisexpectedtoreplacetheStateAutomobile
Inspectorate,willtaketoworkinJulyinKiev,tobefollowedbyLviv,Odessa,
KharkivandlateralloverUkraine.
Ukraine,Canadainconsultationsonvisaliberalization
UkraineandCanadahavestartedconsultationsonvisaliberalizationfor
Ukrainians,inparticularonincreasingthetermofvisaholders'stayinCanadaand
relaxingrequirementstoobtainingvisas,UkrainianPresidentPetroPoroshenko
saidafterameetingwithCanadianPrimeMinisterStephenHarperinKievon6
June2015.
UkrainianPrimeMinisterArseniyYatsenyukhopestocompletefreetradetalks
withCanadainthreemonths.
UKRAINE-WORLD
UkrainianpresidentappointsenvoystoSerbia,Kyrgyzstan
PresidentPetroPoroshenkoappointedOleksandrOleksandrovychasUkraine's
ambassadortoSerbiaandMykolaDoroshenkoasambassadortoKyrgyzstan.
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5.DOMESTICPOLITICAL
Parliamentauthorizespeacekeepers'entrytoUkraine
On4June2015,parliamentauthorizedforeignarmedforcesunits'entryto
UkraineforpeacekeepingmissionsonKiev'srequestandUNorEUdecisionsto
thiseffect.
RussianpresidentialpresssecretaryDmitriyPeskovsaidthatVladimirPutin
mayexercisehisrighttoasktheFederationCouncil'spermissiontouseRussian
troopsabroadduetothisdecisionoftheUkrainianparliament.
EarlierUkrainesuggestedthattheUNandEUdeployapeacekeepingmissionto
Donbas.
Ukrainianparliamentshortensperiodofdefenceplanning
On2June2015,theUkrainianparliamentpassedthebillwhichshortensthe
periodoflong-termdefenceplanningfortheArmedForcesfrom12tofiveyears,
mid-termplanningfromsixtothreetofiveyears,andshort-termplanningfrom
twotoonetothreeyears.
Ukrainianparliamentapprovesplanoflegislativesupportforreforms
On4May2015,theUkrainianparliamentadoptedaplanoflegislativesupportfor
reforms.
Thedocumentsaysthatparliamentshouldpassbillsalongthefollowing
directions:
-constitutionalreformandruleoflaw;
-nationalsecurityanddefencereform;
-Ukraine'sinternationalcommitments;
-macroeconomicstabilizationandreformofeconomy;
-socialsector;
-environmentandnaturalresources;
-humanitarianpolicy.
AccordingtoanopinionpollheldbytheGorsheninInstitute,themajorityof
Ukrainiansconsidersanticorruptionreform(63.4percent)andofficials'vetting
(52.2percent)asprioritysteps.Seethedetailedreportontheopinionpollonthe
institute'swebsite.
TwoUkrainianMPsstrippedofimmunity
On3June2015,theUkrainianparliamentstrippedamemberofthePeople'sWill
parliamentarygroupandex-chiefoftheAydarvolunteerbattalion,Serhiy
Melnychuk,ofimmunityasheissuspectedofbanditryandanumberofother
crimes.Herisksspendinghislifebehindbars.
Thesamedayparliamentstrippednon-affiliatedMPSerhiyKluyevofimmunityas
heissuspectedofgrossfraud.Heisfacingover10yearsinprison.
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KlyuyevmadeanattempttoleaveforViennabutwasstoppedbyborderguards.
On4Junethepoliticianwasputonwantedlist.
PresidentPetroPoroshenkoinhisannualaddresscalledonparliamenttolift
MPs'immunityandlimitthatofjudges.
SpecialpensionsforUkrainianofficialscancelled
Asof1June2015,thePensionFundstoppedassigningspecialpensionstoMPs,
ministers,judges,prosecutors,customsandtaxofficersandotherofficials.
Ukrainianpresidentdeniesconfidentialagreementswithcontroversial
tycoon
UkrainianPresidentPetroPoroshenkohasdeniedreachinganyconfidential
agreementswithtycoonDmytroFirtashduringameetinginViennainspring
2014.Hesaidthisatanewsconferenceon5Junewhileansweringaquestion
fromanLB.uacorrespondent.
Headdedthattherewasadifferentpoliticalagreement,howeveritwassigned
withVitaliyKlitschko.Hemadetheagreementavailabletojournalists.
Duringthecourthearingonhisextradition,Firtashsaidthathemet
PoroshenkoandKlitschkoinViennainspring2014.Herefusedtorevealthe
detailscitingthenon-disclosureagreement."Icansaythatwehaveachieved
whatwewanted.Poroshenkobecamethepresident,Klitschkothemayor,"he
added.
HeadofUkraine'smigrationservicedismissed
TheheadoftheStateMigrationService,SerhiyRadutnyy,hasbeendismissed,
PresidentPetroPoroshenkosaidinhisaddresstoparliamenton4June2015.
Accordingtotheheadofstate,Radutnyyfailedtopreparethestateforvisa-free
regulationswiththeEU.
PoroshenkorecalledthatKievshouldhavecompletedalltechnicalassignments
onEUvisaliberalizationbytheendofAugustaheadofthevisitbyaEuropean
assessmentmissioninSeptember.
Kievpolicechiefdismissed
On5June2015,theCabinetofMinistersdismissedthechiefoftheInterior
Ministry'smaindirectorateinKiev,OleksandrTereshchuk,inaccordancewith
thevettingprocedure.
EarliersomemediareportedthatTereshchuklivedinahousewhichhehad
builtonthelandplotwhichwasarrestedonsuspicionofbeinganillegal
allotment.
TheProsecutor-General'sOfficealsostartedapre-trialinvestigationintoillegal
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enrichmentbytheformerheadoftheStateAutomobileInspectorate,
OleksandrYershov.
Ukrainiandefenceministerdismisseschiefprocurementofficer
On6June2015,DefenceMinisterStepanPoltorakdismissedtheheadofthe
procurementcentrefortheDefenceMinistryandtheGeneralStafffor
insufficientsupplyoftheArmedForcesofUkraine.
SomeheadsofDefenceMinistryandGeneralStaffdepartmentsfaced
disciplinaryaction.
UkrainiancabinetsuggestsdismissalofDonetskregionalgovernor
On5June2015,theCabinetofMinisterspetitionedthepresidenttodismissthe
headoftheDonetskregionalstateadministration,OleksandrKikhtenko,due
tohispoorperformance.
On21May,thegovernmentalcommissionrecognizedtheworkoftheDonetsk
regionalstateadministrationasunsatisfactory.
6.ECONOMY
IMFmissioncompletesitsworkinUkraine
TheIMFmissionhasconcludeditstwo-weekvisittoUkraine.Initsfinal
statement,themissionnotedthat"allperformancecriteriaforend-Marchwere
metandallstructuralbenchmarksdueinthespringareoncoursetobemet,
albeitsomewithadelay."
However,Ukraineneedstoreachagreementwithitscreditorsonthe
restructuringofitspublicdebtinordertoreceiveanewtranche,theIMFsaid.
Itshouldbenotedthattoreceiveanothertranche,theUkrainianparliament
shouldalsopassanumberoflaws,particularly,onstrengtheningthecentral
bank'sindependence,onfiscaldecentralization,andonchangingthetax
administrationsystem.
JapantogiveUkraine1.5bn-dollarloanguarantees
JapanplanstoprovideUkrainewithloanguaranteesworth1.5bndollars,
UkrainianPresidentPetroPoroshenkohassaidfollowingthetalkswith
JapanesePrimeMinisterShinzoAbeheldinKievon6June.
Onthesameday,thesidessignedanintergovernmentalagreementona1.1bndollarsloan.ThefundswillbeprovidedbyJapantoUkraineforthe
reconstructionoftheBortnychisewagetreatmentplantinKiev.
On3June,theUkrainianparliamentratifiedtheagreementbetweenUkraine
andJapanoninvestmentpromotionandprotection.
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ItwasalsoreportedthatUkraineandJapanbegannegotiationsonrelaxingvisa
requirementsforUkrainiancitizens.
Foreignexchangereservesgrowby3percent
ForeignexchangereservesofUkraine'scentralbankinMayincreasedby3
percentto9.92bndollars.
Sincetheyear'sbeginning,thereserveshavegrownbymorethan30percent.
Accordingtoexperts,thecentral'sbankreserveassetsareexpectedtogrowto
13bndollarsbytheendoftheyear,providedthatpublicdebtsecuritiesare
restructuredsuccessfully,thenewsandanalysiswebsiteLB.uasaid.
EBRD,IMFworseneconomicoutlookonUkraine
TheEuropeanBankforReconstructionandDevelopment(EBRD)hasrevised
downwardsitsforecastforUkraine'seconomy,expectingthecountry'sGDPto
fallby9percentin2015,ascomparedtothe7.5-percentdeclineprojected
earlier.
TheIMFalsoprojectsthatUkraine'seconomyshouldshrinkby9percent.
Previously,theIMFexpectedUkraineGDPtocontractby5.5percentthisyear.
InflationinMayslowsto2.2percent
TheUkrainianstatisticsservicehassaidthatinflationinUkraineslowedto2.2
percentinMay,whileinAprilitwas14percent.Annualizedinflationrate
sloweddownto58.4percentfrom60.9recordedattheendofApril.
AccordingtotheIMF,inflationinUkraineshouldreach46percentthisyear.
ItshouldberecalledthataccordingtothetargetssetinUkraine'snational
budgetfor2015,GDPshoulddeclineby5.5percentwhileinflationshouldreach
26.7percent.
Centralbankextendscurrencyrestrictionsforthreemonths
TheNationalBankofUkrainehasextendedtheanti-crisismeasuresuntil3
September.
Inparticular,theregulatorextendedtherequirementsforcompulsorysaleby
exportersof75percentoftheirforeignexchangeearnings,settlementson
export-importoperationsina90-dayterm,andtherestrictiononpurchaseby
banksofnon-cashcurrencyfortheirownoperationsinthesizeof0.1percentof
theirregulatorycapitalperday.
Atthesametime,theNationalBankincreasedtheamountofcashfundsinthe
nationalcurrencythatcanbewithdrawnbyclientsfromtheirdepositaccounts
from150,000to300,000hryvnyas(from7,000to14,000dollars)perday.
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NationalBankliquidatesNadrabank
TheUkrainianNationalBankon4Junedecidedtorevokethebankinglicenseof
Nadrabank,whichisownedbybusinessmanDmytroFirtash,andliquidatethe
financialinstitutionasinsolvent.
ItshouldbenotedthattheregulatoralsodeclaredNatsionalnyyKredyt
(NationalCredit)bankasinsolventon5June.Thisfinancialinstitutionhas
becomethe17thinsolventbanksincetheyear'sbeginningandthe50thsincethe
startof2014.
UkraineresumesexportsofOplottanks
UkrainehasresumedexportstoThailandofUkrainiannew-generationOplot
tanks,whicharemanufacturedatthestate-ownedMalyshevplant,theInterfaxUkrainenewsagencyhassaid,citingasourceinthedefencesector.Theexports
weresuspendedin2014.
The200m-dollarcontractforthesupplyof49tankstoThailandwassignedin
2011.
CourtarrestspropertyofFirtash'sOstchem
Thecourthasarrested46realestatefacilitiesandlandplotsbelongingto
OstchemcompanyofUkrainianbusinessmanDmytroFirtashunderacriminal
investigationintotheinflictionof5.74bnhryvnyas(2.7mdollars)oflosseson
thestate,UkrainianInteriorMinisterArsenAvakovhassaid.
Itshouldberecalledthatearlierthecourtarrested499mcu.m.ofgasstoredin
UkrtranshazfacilitiesbelongingtoOstchemgroup.
Inaddition,AvakovsaidthattheInteriorMinistryopenedacriminalcaseonthe
collusionbetweenformermanagersofNaftohazUkrayiny,astate-runenergy
company,andFirtashduringthecourtproceedingsinStockholmin2010,which
resultedinthedefeatoftheUkrainianside.Asaresult,Naftohazwasobligedto
return12.1bncu.m.ofgastoRosUkrEnergogasintermediarycompany.
ItalsobecameknownthattheSupremeEconomicCourtrejectedtherequest
submittedbycompanyUkrainianChemicalProducts,ownedbyFirtash,to
extendtheleaseoftheVilnohirskstate-runminingandmetallurgicalplant
worth430mhryvnyas(20.5mdollars).
7.ENERGY
BrusselshostsUkraine-Russia-EUexpert-leveltalksongasissues
ExpertsfromUkraine,RussiaandtheEuropeanCommissionmetinBrusselson
2JunetodiscussthetermsofRussiannaturalgassuppliestoUkraine.
AccordingtoRussianEnergyMinisterAleksandrNovak,thetwosidesreached
apreliminaryagreementthatatleast19bncu.m.ofgaswillbepumpedintothe
Ukrainianundergroundgasstoragefacilitiesaheadofthewinterseason.Healso
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saidthattheEuropeanCommissionwillprovidefinancialassistanceforUkraine
topurchasethegasifthelatterdoesnothaveenoughresources.
Atthesametime,RussiannewsagencyRIANovosti,citingNaftohaz'sbusiness
developmentdirectorYuriyVitrenko,reportedthatthecompanyisnotgoing
toprovideanyguaranteesforthepurchaseofgasoritspumpinginto
undergroundstoragefacilities.
ItisplannedthatatrilateralministerialmeetingwillbeheldbytheendofJune,
atwhichUkraine,RussiaandtheEUwillsignaprotocolestablishingtheterms
ofRussiangassuppliestoUkraineuntilthespringof2016.
ItshouldberecalledthattheagreementunderwhichUkraineiscurrently
buyinggasfromRussiaexpireson1July.
PresidentgivesNaftohazgreenlighttorecoverdebtsfromconsumers
UkrainianPresidentPetroPoroshenkohassignedalawthatgivestherightto
NaftohazUkrayiny,astate-runenergycompany,toconductforcedrecoveryof
debtfromfuelandenergycompanies,andtosellconsumers'debtsforsupplied
gastothirdpartiesthroughauctions.
UkraineresumesgasimportsfromHungary
UkraineresumedimportsofnaturalgasfromEuropethroughHungaryon4
June,thestate-runcompanyUkrtranshazhasreported.Theimportswere
suspendedinApril.
ItisalsoreportedthatUkrtranshazandHungariangasoperatorFGSZon29May
signedanagreementontheinterconnectionofpipelinescrossingtheUkraineHungaryborder,whichallowsperformingvirtualreversegassupplies.
ThecapacityoftheinterconnectorinthedirectionofHungaryreaches26bn
cu.m.peryearwhilethepipesinthedirectionofUkrainecanpump6.1bncu.m.
peryear.
CourtoverturnsdismissalofUkrtransnaftahead
ALutskcourton29Maydeclaredillegalthe19Marchdecisionbythe
supervisoryboardofUkrtransnafta,theoperatorofUkraine'soilpipelines,to
dismissOleksandrLazorko(whoissaidtobeaffiliatedwithPrivatGroupof
IhorKolomoyskyy)fromthepostofthecompany'sboardchairman,Andriy
Pasichnyk,executivedirectorofthestate-runenergycompanyNaftohaz
Ukrayiny,hassaid.
TheNaftohazofficialbelievesthatthelawsuitwasfiledinordertolegitimizethe
agreementsonplacing2bnhryvnyas(95mdollars)instatefundson
Privatbank's(Kolomoyskyy'sbank)deposits,whichweresignedonthedayof
Lazorko'sdismissal.
ItshouldberecalledthatthesupervisoryboardofUkrtransnaftamanagedto
appointRomanSydorakasanewboardchairman(whoisrunningthe
companytoday)onlyon22April.
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Parliamentcuts"greentariff"forsolarpowerplants
TheUkrainianparliamenton4Junepassedthelawonreducingthe"green
tariff"forsolarpowerplantsbyremovingthepeakratioof1.8fromthetariff
calculationformula.
AccordingtoEnergyMinisterVolodymyrDemchyshyn,thisdocumentwill
allowsaving1bnhryvnyas(47.6mdollars)bytheendoftheyear.
ExpertssaythatthelawwillhelpeliminatethemonopolyofSerhiyandAndriy
Klyuyevonthemarket.
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