1. law, govt and politics
2. legal issues
3. human rights

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CONTENT
1.Topnews…page5
2.ThearmedconflictinUkraine`seast…page5
UkrainiancourtarreststwoRussianspecialtroops
RussiawithdrawsTolyattispecialunitfromUkraine,sayssecurityservice
DozenssoldiersofRussianspecialunitsdetainedinDonbas,saysUkrainian
president
RussiadeploysequipmentfornuclearweaponsinDonbas-NATO
Pro-Russianseparatistsinstallanti-aircraftsystemnearMariupol-OSCE
UkrainecontactgroupconvenesinMinsk
AmnestyInternationalreportsnewevidenceofsummaryexecutionof
Ukrainiansoldiers
Pro-RussianseparatistsfreeUkrainiancommandercapturedinDonetskairport
So-calledNovorossiyaparliamentsuspendsoperations
Ukrainefreezes667,000dollarsonaccountsofseparatistleaders
3.Crimeanissue…page8
Ukraine'ssecurityserviceresumesprobeintodeportationofCrimeanTatars
Pro-Ukrainianactivists,journalistsdetainedinCrimea
Ukraine'stopprosecutor'sofficesuspects276Crimeanjudgesoftreason
CrimeansolarpowerplantsofKlyuyevbrothersarrested
4.Internationalpolitical…page9
Ukraine-Russia
UkraineterminatesmilitarycooperationagreementswithRussia
UkrainemightseekdeploymentofUSmissiledefencesystemtoprotectitself
againstRussia,saysofficial
RussianinvestigatorscompleteprobeintoUkraine'sdetainedpilot
UkrainianTVjournalistsdetainedinTolyatti
Ukraine-EU
EasternPartnershipsummitissuesfinaldeclaration
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SpainratifiesEU-Ukraineassociationagreement
RussiaputsforwardlistofdemandstoEU-Ukraineassociationagreement
EuropeanPeople'sPartyaccusesRussiaofoccupyingDonbas
5.Domesticpolitical…page12
DecommunizationlawtakeseffectinUkraine
ParliamentappointsheadsofStatePropertyFund,AntimonopolyCommittee
Combatantstatusgrantedto52,000participantsinantiterroristoperation
Parliamentintroducespublicprosecutionforcorruption
Ukrainianpresidentapprovesstrategyofjudicialreform
Qualificationcommissionsuspendssevenjudges
StateTrafficInspectoratechiefresigns
Ukrainianparliamentpasseslawtoincreasecourtfees
Ukraineapprovesspacestrategyby2022
UkrainianInteriorMinistrysummonscontroversialtycoonforinterview
6.Economy…page14
Parliamentallowsimposingmoratoriumonpublicdebtrepayment
Parliamentexemptsforeigninvestorsfromtaxesongovernmentbonds
Ukraine,USstrike1bn-dollarloanguaranteesdeal
Ukraine,EUsign1.8bn-euroagreement
Japanprovides1.5bndollarsofcreditassistancetoUkraine
Ukrainetospend4.3bndollarsondebtservice
Securityagenciesaskingforextra810mdollarsfromFinanceMinistry
IndustrialslumpinUkraineaccelerates
Governmentupdateslistofoffshores
Ukrainianbanks'debtstocentralbankgrowby303mdollars
Moneysupplydecreasesby4.7percentinApril
Parliamentcutsunifiedsocialtax
BusinessombudsmanofficestartsworkinUkraine
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7.Energy…page17
Ukraineimportsalmost1bncu.m.ofgasinMay
Ukrainestocksover9bncu.m.ofgasinstoragefacilities
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1.TOPNEWS
DetainedRussianspecialtroopssuspectedofterrorism
RadahasterminatedtheagreementonthetransitofRussianmilitaryin
Transnistria.
ReadmoreinTHEARMEDCONFLICTINUKRAINE'SEASTandINTERNATIONAL
POLITICAL.
EUtodecideonvisa-freetravelforUkrainebyyear-end
RussiaputsforwarditsdemandstotheeconomicchapteroftheEU-Ukraine
associationagreement.
ReadmoreinINTERNATIONALPOLITICAL.
Parliamentallowscabinettoimposemoratoriumonforeigndebt
repayment
TobeissuedanotherIMFtranche,Ukrainehastonegotiatetherestructuringof
thestatedebtwithitscreditorsbyJune.
ReadmoreinECONOMY.
2.THEARMEDCONFLICTINUKRAINE'SEAST
UkrainiancourtarreststwoRussianspecialtroops
On22May,theKievShevchenkivskyydistrictcourtruledtoarrestsoldiersof
thethirdspecialbrigadeoftheMainIntelligenceDirectorate(GRU)ofthe
GeneralStaffoftheRussianArmedForces,whichislocatedinTolyatti(Samara
Region,Russia),Capt.YevgeniyYerofeyevandSgtAleksandrAleksandrov,for
twomonths.TheywillremainintheKievmilitaryhospitaluntiltheendoftheir
treatment.
On19May,theSecurityServiceofUkraine(SBU)presentedthemwithanotice
ofsuspicionofparticipatinginterroristactivitiesoftheself-proclaimed
Luhanskpeople'srepublic.
TheSBUreportedthatthedetainedsoldiersarenotsubjecttoexchangein
accordancewiththeMinskagreementsastheyarenotmilitia.
Aspreviouslyreported,on16MayYerofeyevandAleksandrovwere
participatinginasabotageraidandattemptedtoseizeastrategicbridgenear
theLuhanskRegiontownShchastya,whichislocatedontheterritoryunder
Ukraine'scontrol.TheywerewoundedduringafirefightwithUkrainian
soldiers.UkrainiantroopsseizedYerofeyev'sValassaultrifle,withwhichhehad
shotdeadaUkrainianserviceman.
TheRussianDefenceMinistryadmittedthatthedetainedsoldierswereRussian
nationalsbutaddedthattheyhadbeendismissedfromthearmy.However,both
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YerofeyevandAleksandrovclaimthattheyarecurrentlyservingintheRussian
ArmedForces.
WewouldliketopointoutthatrepresentativesfromtheOrganizationfor
SecurityandCooperationinEurope(OSCE),theInternationalCommitteeofthe
RedCross,theUNandEUhumanrightsexpertsvisitedthedetainedRussian
soldiersinthehospital.
RussiawithdrawsTolyattispecialunitfromUkraine,sayssecurityservice
RussiahaswithdrawnabattalionofthethirdbrigadeoftheTolyattispecialunit
fromUkrainianterritory,theSecurityServiceofUkraine(SBU)saidon17May,
thenextdayafterUkrainiansoldiershaddetainedRussiansYevgeniy
YerofeyevandAleksandrAleksandrov.
TheSBUsaidthatithadidentified 63 soldiers serving in the brigadewhohad
takenpartinmilitaryactionsinDonbas.
DozenssoldiersofRussianspecialunitsdetainedinDonbas,says
Ukrainianpresident
Overthepastfewmonths,Ukrainiansoldiershavedetainedmorethan80
peopleservingwithRussianspecialunitswhohadparticipatedinmilitary
actionsintheeastofUkraine,UkrainianPresidentPetroPoroshenkohassaid.
WewouldliketopointoutthatRussianbloggerRuslanLeviyevsaidthatthree
gravesofoperativesofthe16thspecialbrigadeoftheMainIntelligence
DirectorateoftheGeneralStaffoftheRussianArmedForcesinthecityof
Tambovhadbeenfound.TheRussiansoldierswerereportedlykilledon5May.
RussiadeploysequipmentfornuclearweaponsinDonbas-NATO
DuringtheconflictintheeastofUkraine,Russiahasdeployedtheredualpurposeequipmentwhichcanbeusedforbothconventionalandnuclear
weapons,SupremeAlliedCommanderEuropeofNATOAlliedCommand
OperationsPhilipBreedlovehasbeenquotedbyBloombergassaying.
HeaddedthattherewasnodirectevidencethattheKremlinhadinstalled
nuclearweaponsinDonbas.
Pro-Russianseparatistsinstallanti-aircraftsystemnearMariupol-OSCE
AspecialmonitoringOSCEmissiontoUkrainehasconfirmedthepresenceof
modern9K35Strela-10surface-to-airmissilesystemsontheterritoryof
Ukrainecontrolledbypro-Russianseparatists.Inparticular,observersspotted
oneofthem25kmawayfromMariupol.
Additionally,themission'sdroneregisteredseventanksofanunidentifiedtype
ontheterritoryoftheself-proclaimedDonetskpeople'srepublic50kmaway
fromMariupol.
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WewouldliketopointoutthatUkrainianservicemensaidthatwhitephosphorus
munitionshadbeenusedagainstthem.
On24May,Reutersreportedthatmilitaryvehiclesdrovealongaroadatthe
RussiansoutherntownofMatveevKurgan,neartheRussian-Ukrainianborderin
Rostovregion.TheconvoyincludedUragan(«Hurricane»)multiplerocket
launchers,militarytruckswithoutlicenseplatesandfewarmouredpersonnel
carriers(APC).
UkrainecontactgroupconvenesinMinsk
ThetrilateralcontactgroupforsettlementoftheDonbasconflict(Ukraine,
Russia,andtheOSCE,representativesfromtheself-proclaimedDonetskand
Luhanskpeople'srepublics)andsubgroupsmetfortalksinMinskon22May
2015.
Theparticipantsagreedonacease-fireintheareaofDonetskRegion's
Shyrokyne.However,on23Maypro-RussianmilitantsoftheDonetskpeople's
republicviolatedthetruce,thegeneralstaffoftheUkrainianantiterrorist
operationhasreported.
Accordingtoasurvey by the Gorshenin Institute,themajorityofUkrainians(69.2
percent)isopposedtoholdingtalkswiththeself-proclaimedDonetskand
Luhanskpeople'srepublics.Dialoguewiththeseparatistsissupportedby23.3
percentofrespondents.Some7.6percentfounditdifficulttoanswer.
AmnestyInternationalreportsnewevidenceofsummaryexecutionof
Ukrainiansoldiers
TheAmnestyInternationalhasestablishedfourcaseswhenUkrainiansoldiers
capturedbypro-Russianseparatistshavebeensummarilyexecuted,organization
representativeKrasimYankovhassaid.
Asevidence,hecitedareportpostedbytheLB.uanewsandanalysiswebsite
abouttheexecutionofUkrainiansoldiersinthetownKrasnyyPartyzanin
DonetskRegionon22January.
AmnestyInternationalreportedthatthetwosidesoftheconflictinDonbashad
treatedhostagesinhumanely.Intheirturn,theUkrainianDefenceMinistryand
theSecurityServiceofUkrainedeniedthesereports,claimingthattheyhadnot
heldanyhostages.Atthesametime,theUkrainiansidesaidthatitwasreadyfor
dialoguewithinternationalorganizationsontheconditionsinwhichdetained
militantswereheld.
Pro-RussianseparatistsfreeUkrainiancommandercapturedinDonetsk
airport
On22May,pro-Russianmilitantsfreedfromcaptivitythecommanderofthe90th
battalionofthe81stbrigadeoftheArmedForcesofUkraine,OlehKuzminykh,
whohadparticipatedinmilitaryoperationstodefendDonetskairport.
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bytheDonetskpeople'srepublicinJanuary.Pro-Russianseparatistsparadeda
groupofdetainedUkrainiansoldiersinDonetskandKuzminykhwasamong
them.
So-calledNovorossiyaparliamentsuspendsoperations
Theso-calledNovorossiyaparliamenthassuspendedoperations,itsleaderand
formerPartyofRegionsMP,OlehTsaryov,hassaid.
HeexplainedthatthiswasreportedlydonetomeetthetermsoftheMinsk
agreements,underwhich"theself-proclaimedDonetskandLuhanskpeople's
republics(DPRandLPRrespectively)aretoreturntoUkraine".
EarlierRussianmediareportedtheNovorossiyaprojectclosed.
On24May2014,attheso-calledassemblyoftheself-proclaimedDPRandLPR,
thepro-Russianseparatistleaderssignedanagreementtoestablish
Novorossiyaastheunionoftwo"people'srepublics".
Ukrainefreezes667,000dollarsonaccountsofseparatistleaders
TheSecurityServiceofUkraineandtheStateFinancialMonitoringServiceof
Ukrainehavefrozen14mhryvnyas(667,000dollars)ontheaccountsof10
ministersoftheself-proclaimedDonetskandLuhanskpeople'srepublics,
includingOleksandrZakharchenkoandHennadiyTsypkalov.
3.CRIMEANISSUE
Ukraine'ssecurityserviceresumesprobeintodeportationofCrimean
Tatars
TheSecurityServiceofUkraine(SBU)hasresumedaninvestigationinto
deportationofCrimeanTatarsbySovietauthoritiesin1944,SBUchiefValentyn
Nalyvaychenkohassaid.
Wewouldliketopointoutthaton18MayRussianspecialforcesoperatives
detained60participantsinacarrallyontheoccasionofDayofRemembrance
ofCrimeanTatarDeportationVictims,whichwasheldinSimferopol.Theywere
laterreleased.
Weshallremindyouthattheself-declaredCrimeanauthoritiesdenied
permissiontotheself-styledCrimeanTatargovernmentMajlistoholdarallyto
honourdeportationvictims.
Pro-Ukrainianactivists,journalistsdetainedinCrimea
On21May,CrimeanpolicedetainedfouractivistsoftheUkrainiancultural
centre,whoplannedtoorganizeaflashmobontheoccasionofVyshyvankaDay
[traditionalembroideredclothing].AfilmingcrewoftheUkrainianTVchannel
Inter,whoplannedtoshootavideoreportabouttheevent,wasalsodetained.
Theywereallsubsequentlyreleased.
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Ukraine'stopprosecutor'sofficesuspects276Crimeanjudgesoftreason
TheProsecutor-General'sOfficeofUkrainehasreportedthatitsuspects276
Crimeanjudgeswhohadtransferredtoworkforillegallyset-upRussianoffices
oftreason.
CrimeansolarpowerplantsofKlyuyevbrothersarrested
ActingonthelawsuitsfiledbytheMoscow-basedDepositorsProtectionFund
NGO,theRussianFederalBailiffServicehasarrestedallfiveCrimeansolar
powerplantsbelongingtoaformerheadoftheUkrainianpresidential
administration,AndriyKlyuyev,andhisbrother,MPSerhiyKlyuyev.
Earlier,theProsecutor-General'sOfficeofUkrainehasrequestedaparliament
permissiontoarrestSerhiyKlyuyev.AccordingtoUkrainianmediareports,heis
suspectedoffalsepretense.
4.INTERNATIONALPOLITICAL
UKRAINE-RUSSIA
UkraineterminatesmilitarycooperationagreementswithRussia
On21May,theVerkhovnaRadaofUkraineterminatedthefollowingfive
militaryagreementswithRussia:
-oncooperationinthemilitaryareaof1995;
-oncooperationonmilitaryintelligenceof1997;
-onorganizationofintestatemilitarytransportof1995;
-onjointprotectionofclassifiedinformationof2000;
-ontransitthroughUkrainianterritoryofRussiansoldierswhoarestationedin
Moldova'sbreakawayDniesterregionof1995.
On20May,theCabinetofMinistersofUkrainedecidedtoterminatean
agreementwithRussiaonmilitaryandtechnicalcooperationof1993.
UkrainemightseekdeploymentofUSmissiledefencesystemtoprotect
itselfagainstRussia,saysofficial
Ukrainemightstartconsultationsonthedeploymentofcomponentsfora
missiledefencesystemonitsterritorybecauseRussiastarteddeployingnuclear
weaponsonCrimeanterritory,thesecretaryoftheUkrainianNationalSecurity
andDefenceCouncil,OleksandrTurchynov,hassaid.
TheUSDepartmentofStatesaidthattheUSAandNATOdidnotplantoposition
theirmissiledefencesystemsinUkraine.
ThespokesmanforRussianPresidentVladimirPutin,DmitriyPeskov,said
thatelementsofAmericanmissiledefencesystemsdeployedinUkrainewould
beviewedasathreatandtriggerreciprocalmeasures.
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RussianinvestigatorscompleteprobeintoUkraine'sdetainedpilot
On21May,theRussianInvestigationsCommitteecompletedapreliminary
probeintoamemberoftheUkrainiandelegationtotheParliamentaryAssembly
oftheCouncilofEurope,NadiyaSavchenko,andsentittoherdefenceteam.
UkrainianTVjournalistsdetainedinTolyatti
On22May2015,policeinRussia'sTolyattidetainedthejournalistsofUkraine's
InterTVandRussia'sDozhdTVnearthemilitaryunitofspecialforceofficers
YevgeniyYerofeyevandAleksandrAleksandrovarrestedinUkraine.The
journalistswerequestionedandlaterreleased.
UKRAINE-EU
EasternPartnershipsummitissuesfinaldeclaration
FollowingtheRigaEasternPartnershipsummiton21-22May2015,theEU
memberstatesandprogrammeparticipants(Azerbaijan,Armenia,Belarus,
Georgia,MoldovaandUkraine)issuedajointdeclarationsayinginparticular:
-TheylookforwardtocompletionbyUkraineandGeorgiaofthe
implementationofthesecondphaseoftheirVisaLiberalizationActionPlans
(VLAPs)onceallbenchmarksarefulfilledthroughtheimplementationofall
requiredreforms,andwelcometheEuropeanCommission'sreadinesstodoits
utmosttosupportUkraineandGeorgiaintheimplementationoftheirVLAPs
anditsintentiontoreportonprogressbyUkraineandGeorgiarespectivelyby
theendof2015;
-SummitparticipantsacknowledgetheEuropeanaspirationsandEuropean
choiceofthepartnersconcerned,asstatedintheassociationagreements(AA)
(Ukrainiandiplomatsearlierinsistedthatthedocumentshouldmentiona
EuropeanprospectforUkraine.);
-SummitparticipantslookforwardtotheprovisionalapplicationoftheDeep
andComprehensiveFreeTradeArea(DCFTA)withUkrainestartingon1
January2016.TheystressthatimplementationofAA/DCFTAswillbeatop
priorityoftheEUandthepartnersconcernedforthecomingyears;
-TheEUmemberstatescondemntheillegalannexationofCrimea.Thesummit
participantsreaffirmtheirpositionsinrelationto"UNGeneralAssembly
Resolution68/262ontheterritorialintegrityofUkraine"recognizingthe
changeofCrimea'sstatusasunlawful(BelarusandArmeniadidnotsupportthe
resolution);
-Theyacknowledgetheprogressmadeonmajorenergyinfrastructureprojects
andinterconnectivityenhancementsputinplacesincethelastsummit,
includingopeningnaturalgasreverseflowcapacitiestoUkrainefromHungary,
PolandandSlovakia,theparticularroleplayedbyAzerbaijanaswellasthe
contributionbyothers,includingGeorgia,intherealizationoftheSoutherngas
corridor(linkingtheEUandtheCaspianregionandbypassingRussia);
-TheystresstheimportanceofconcludingtheEU-UkraineAviationAgreement,
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asreferredintheassociationagreement,attheearliestpossibledatein2015.
SpainratifiesEU-Ukraineassociationagreement
SpainratifiedtheEU-Ukraineassociationagreementon19May2015.
On20May,theCzechparliamentfailedtoincludetheratificationissueinthe
agendabecausetheCommunistsobjected.Theissuewaspostponeduntilthe
nextsessionduetostarton15June.
Bynow,18EUmemberstateshavefullyratifiedtheassociationagreementwith
Ukraine.Theratificationprocessisinprogressinsixmorestates.
Austria,Greece,ItalyandCyprushavenotyetstartedtheprocedure.According
tomediareports,thesefourcountriesareespeciallyopposedtoanti-Russian
sanctions.
Accordingtoasurvey by the Gorshenin Institute,themajorityofUkrainians(62.2
percent)favourUkraine'sintegrationintotheEU,while13.5percentof
respondentssupportitsjoiningtheCustomsUnionofBelarus,Kazakhstanand
Russia.Thereare14.2percentofrespondentswhothinkUkraineshouldget
closerneitherwiththeEUnorwiththeCustomsUnion.
RussiaputsforwardlistofdemandstoEU-Ukraineassociationagreement
RussiahasputforwarditsdemandstotheEU-Ukraineassociationagreement,
RussianEconomicDevelopmentMinisterAlekseyUlyukayevhassaidafterthe
Ukraine-EU-RussiatalksontheeconomicchapterofthisagreementinBrussels
on18May2015.
Inparticular,Russiasuggestedtransitionperiodsforcertaincommodities.Also,
RussiawantsUkrainetojointheelectroniccertificationsystemoftheEurasian
EconomicUnion.MoscowalsodemandedthatitsandUkraine'senergysystems
continuetoworkinparallel.
HoweverUlyukayevsaidthatRussianolongerinsistedonfurtherdelayingthe
implementationoftheeconomicchapteroftheassociationagreement.
Expertsareexpectedtomeetsoonforthetrilateraltalksoncustoms
administration,technicalbarrierstotradeandonsanitaryandphytosanitary
measures.Thenextroundofministerialconsultationswillbeheldafterthe
expertscompletetheirworkinJuly.
EuropeanPeople'sPartyaccusesRussiaofoccupyingDonbas
TheEuropeanPeople'sPartyhasaccusedRussiaofoccupyingsomeareasof
Ukraine'sDonetskandLuhanskregionsandcondemnedtheillegalannexation
ofCrimea.Thisisoutlinedinthedeclarationadoptedattheparty'scongressin
Rigaon21May2015.
ThedocumentcallsforthecompleteimplementationoftheMinskagreements.
ThepartyalsourgesadiscussiononapossibilityofsendinganEUmissionto
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UkrainetofacilitatetheimplementationoftheMinskaccords.
ThedeclarationsaystheEuropeanPeople'sPartyislookingforwardtotheEU
introducingvisa-freeregulationsforUkraineasof2016.
5.DOMESTICPOLITICAL
DecommunizationlawtakeseffectinUkraine
ThelawsregulatingtheprocessofdecommunizationinUkrainetookeffecton
21May2015.
ThenewregulationsbanSovietsymbols,condemnthecommunistregime,open
KGBarchivestothepublicandrecognizeUkrainianInsurgentArmy(UPA)
membersasfightersforUkraine'sindependence.
OSCERepresentativeonFreedomoftheMediaDunjaMijatovichassaidthe
decommunizationlawspotentiallycarryathreattothefreedomofspeechin
Ukraine.
EarliertheUkrainianpresidentialadministrationsaidthattheheadofstate
referredtoparliamentamendmentstothelawaimedatremovingthe
provisionswhichcouldbeusedagainsttherightsandfreedomsofaperson.
ParliamentappointsheadsofStatePropertyFund,Antimonopoly
Committee
On19May2015,theUkrainianparliamentputaformerheadoftheFiscal
Service,IhorBilous,inchargeoftheStatePropertyFund.
ThesamedayparliamentappointedaformerlawyerwiththeArcelorMittal
KryvyyRih,YuriyTerentyev,aschairmanoftheAntimonopolyCommittee.
BothofficeshavehadnotopmanagerssincePresidentViktorYanukovychwas
ousted.
Combatantstatusgrantedto52,000participantsinantiterrorist
operation
Asof22May2015,combatantstatushasbeengrantedto51,970servicemen
andemployeesoftheArmedForcesofUkrainewhotookpartinthe
antiterroristoperationinDonbas.
Parliamentintroducespublicprosecutionforcorruption
On22May2015,theUkrainianparliamentpassedthelawintroducingpublic
prosecutionforcorruptiontothecriminalprocedurallaw.
Accordingtothedocument,apublicprosecutorisanyindividualorlegalentity
directlyaffectedbyacrimeorthosewhoareawareofacrime.
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Thesamedayparliamentpassedthelawallowingtheuseofphotoandvideo
materialsasevidenceincasesonofficials'bribery.
Ukrainianpresidentapprovesstrategyofjudicialreform
On20May2015,PresidentPetroPoroshenkoapprovedthestrategyof
reformingthejudiciary,courtproceedingsandadjacentlegalinstitutionsfor
2015-20.
Legislationistoberevisedduringthefirststageofjudicialreform,with
systemicchangestothelaw,includingconstitutionalamendments,tobe
introducedduringthesecondstage.
Qualificationcommissionsuspendssevenjudges
On18May2015,actingonthemotionfiledbyProsecutor-GeneralViktor
Shokin,theHigherQualificationCommissionsuspendedsevenjudgesbecause
ofcriminalproceedingslaunchedagainstthem,thenewsandanalysiswebsite
LB.uahassaid.
StateTrafficInspectoratechiefresigns
On19May2015,theheadoftheStateTrafficInspectorate,OleksandrYershov,
tenderedhisresignationtotheinteriorministerandwasdismissed.
TheresignationwasprecededbymediareportsaboutYershovallegedlylyingin
hisincomestatement.
Ukrainianparliamentpasseslawtoincreasecourtfees
On22May2015,theUkrainianparliamentpassedthelawonhighercourtfees,
asrequestedbyoneoftheclausesoftheIMFloanprogramme.
Thus,theFinanceMinistry,thePensionFund,theNationalBankofUkraineand
theAntimonopolyCommitteearenolongerexemptfromcourtfees.
Individualswillnothavetopayhigherfees.
Ukraineapprovesspacestrategyby2022
On21May2015,theStateSpaceAgencyapprovedUkraine'sspacestrategyby
2022.
Inparticular,thedocumentforeseesthelaunchofatleastsixsatellites.
OneofthekeytasksoutlinedinthestrategyisUkraine'sbroaderinternational
cooperationandmembershipoftheEuropeanSpaceAgency.
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UkrainianInteriorMinistrysummonscontroversialtycoonforinterview
ThemaininvestigationsdirectorateoftheInteriorMinistryhassummoned
UkrainiantycoonDmytroFirtashforaninterviewandinvestigativeactions.
Hewassummonedwithintheframeworkoftheinvestigationintothecriminal
caseoncorruptionbytheOstchemgroupofcompaniesandembezzlementof
Ukraine'sstateproperty.
TheHigherEconomicCourtrejectedanapplicationbytheUkrainianChemical
ProductscompanyownedbyFirtashtoprolongtheleaseoftheIrshanskmining
anddressingmill.
6.ECONOMY
Parliamentallowsimposingmoratoriumonpublicdebtrepayment
TheUkrainianparliamenton19Mayapprovedagovernmentbillthatgivesthe
cabinettherighttoimposemoratoriumonmakingpaymentsoncertain
externaldebts.
ThedocumentwasadoptedinordertoconvinceUkraine'screditorstoagreeto
debtrestructuring.
Itshouldberecalledthat,accordingtotheIMF'srequirements,Ukraineneedsto
reachagreementwithcreditorsonrestructuringpartofitsforeigndebtsworth
15bndollarsbyJune2015.Sofar,thenegotiationsonthisissueyieldedno
result.
USSecretaryoftheTreasuryJacobLewbelievesthatholdersofUkraine'sdebt
shouldmakeconcessionsinthetalkswiththeUkrainiangovernment.
RussianEnergyMinisterAleksandrNovakthreatenedthatRussiamightdecide
whethertoextendthediscountonthenaturalgaspriceforUkraine'sstate-run
energycompanyNaftohazUkrayinyforanotherperiodafterUkrainedecides
whethertorepayitsEurobondsfor3bndollars.
Parliamentexemptsforeigninvestorsfromtaxesongovernmentbonds
TheUkrainianparliamenton22Mayexemptedfromtaxationincomereceived
byforeigninvestorsfromtransactionswithgovernmentandlocalsecurities,as
wellasincomeonguaranteedgovernmentloans.
Ukraine,USstrike1bn-dollarloanguaranteesdeal
RepresentativesofUkraineandtheUnitedStatessignedinKievon18Mayan
intergovernmentalagreementtoprovideloanguaranteesworth1bndollarsto
theUkrainiansideattheendof2015.
USAmbassadorGeoffreyPyattsaidthattheUnitedStatesmightgiveUkraine
additionalguaranteesforanother1bndollarsifthelatterstickstoreforms.
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Ukraine,EUsign1.8bn-euroagreement
DuringtheEasternPartnershipsummitheldinRigaon22May,Ukraineandthe
EuropeanUnionsignedamemorandumontheallocationtotheUkrainianside
ofmacro-financialassistanceworth1.8bneuros.
Thefundswillbedisbursedinthreetranchesof600meuroseach.Thefirst
tranchemayarriveinthenextfewdays.
ItshouldbenotedthattheEUandUkraineplantoestablishajointanticorruptioninvestigationteambyJuneinordertopreventmisuseofthe
EuropeanfundsallocatedtoKiev.
Japanprovides1.5bndollarsofcreditassistancetoUkraine
Tokyohasallocated1.5bndollarsincreditassistancetoKievforthe
implementationofanumberofdevelopmentsupportprojects,Ukraine's
presidentialadministrationhassaid.
Inaddition,theJapanesegovernmentdecidedtoallocateadditionalassistance
toUkraineintheamountof316.6mdollarsforstabilizationoftheUkrainian
economyandsupportofthecountry'sreforms.
Ukrainetospend4.3bndollarsondebtservice
Ukraineshouldspend90bnhryvnyas(4.3bndollars)onservicingitspublicdebt
bytheendofthecurrentyear,UkrainianPrimeMinisterArseniyYatsenyukhas
said.
Accordingtohim,thetotalservicepaymentsonexternalanddomesticdebtin
thenextfouryearswillreach47bndollars.
Securityagenciesaskingforextra810mdollarsfromFinanceMinistry
TenUkrainianagenciesinvolvedindefenceandlaw-enforcementactivitieshave
askedtheFinanceMinistrytoincreasetheirfundingby17bnhryvnyas(810m
dollars),theministry'spressservicesaid.
ItshouldbenotedthattheDefenceMinistryisexpectingtoreceiveadditional
7.7bnhryvnyas(367mdollars)fromthestatebudgetinthecurrentyearfor
urgentneedsofthearmy.
IndustrialslumpinUkraineaccelerates
AccordingtotheStateStatisticsService,industrialproductiontoApril2015
droppedby21.7percentagainstApril2014.ComparedwithMarch2015,
industrialoutputcontractedby2percent.
Inthefirstfourmonthsof2015,industrialproductiondeclinedby21.5percent
comparedwithJanuary-April2014.
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Governmentupdateslistofoffshores
TheUkrainiancabinethasaddedAustria,Turkmenistan,HongKongandNiueto
thelistofthecountries,transactionswithwhosecounterpartiesaresubjectto
controlunderthelawontransferpricing.Atthesametime,Albaniawas
excludedfromthelist.
Thetotalnumberofcountriesintheoffshoreslistincreasedto76.
Ukrainianbanks'debtstocentralbankgrowby303mdollars
CreditindebtednessofUkrainianbanksandtheDepositGuaranteeFundtothe
NationalBankinAprilincreasedby6.36bnhryvnyas(303mdollars)to
136.62bnhryvnyas(6.5bndollars).
Banks'lossesovertheperiodmade1.91bnhryvnyas(91mdollars).
Moneysupplydecreasesby4.7percentinApril
AccordingtotheUkrainianNationalBank,moneysupplyinApril2015
decreasedby4.7percentto976.3bnhryvnyas(46.5bndollars)duetothe
strengtheningoftheUkrainianhryvnyaandtheoutflowofaforeigncurrency
deposits.
ItshouldbenotedthatthevolumeofdepositsinthenationalcurrencyinApril
showedincreaseforthefirsttimesincetheyear'sbeginning(+0.4percentto
347.5bnhryvnyas),whiledepositsinforeigncurrencydecreasedby3.1percent
to16.3bndollars.
Parliamentcutsunifiedsocialtax
TheUkrainianparliamenton19Maypassedalawunderwhichthetaxon
personalincomefrom10to17minimumsalaries(from12,000to20,000
hryvnyasor570to950dollars)isreducedfrom20to15percent;incomeofup
to10minimumwagesandincomeofmorethan17wageswillbetaxedasbefore
at15and20percent,respectively.
BusinessombudsmanofficestartsworkinUkraine
Startingfrom20May,theofficeofthebusinessombudsmanbegantoprocess
complaintsagainstauthoritiesfrombusinessesoperatinginUkraine.
Thebusinessombudsmanofficehas15employees.Theirsalariesoverthenext
twoyearswillbecoveredbyinternationaldonors.
Theagencyhastherighttoinitiateitsowninvestigationwheneveritlearns
aboutanyviolationsoftherightsofentrepreneursfromanysources,including
themedia.
ItshouldberecalledthattheUkrainiancabinetappointedAlgirdasSemeta,
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Lithuania'sex-ministeroffinance,formerEuropeanCommissionerforBudget
andTaxes,tothepostofbusinessombudsman.
7.ENERGY
Ukraineimportsalmost1bncu.m.ofgasinMay
Ukraineimported989mcu.m.ofgasfrom1to21May2015,theUkrainiangas
transportnetworkoperatorUkrtranshazhassaid.
Ofthisvolume,499mcu.m.camefromSlovakiaand490mcu.m.fromRussia.
Ukrainestocksover9bncu.m.ofgasinstoragefacilities
TheUkrainiangastransportnetworkoperatorUkrtranshazhassaidthat9.29bn
cu.m.ofgashasbeenstockedinthecountry'sundergroundstoragefacilitiesby
18May2015.Thisis3.6percentmorethanaweekearlier.
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