- Gorshenin Institute
INTHESPOTLIGHT ©GorsheninInstituteMay2015Allrightsreserved ISSUE58(221) 05/04/2015 INTHESPOTLIGHT ISSUE58(221) 05/04/2015 CONTENT 1.Topnews…page5 2.ArmedconflictinUkraine`seast…page5 Russiabuildingupforcesforoffensive-NATO NormandyFourleadersdiscussUkrainianconflictonphone USAreadytojointalksonUkraineconflictinNormandyFourformat RussiaappointsnewrepresentativetoDonbascontactgroup EUreadytosendcivilianassessmentmissiontoDonbas 3.Crimeanissue…page6 UkrainiancourtarrestsCrimeanex-lawmakeronsuspicionoftreason EU,UkrainianleadersagaincondemnRussianannexationofCrimea CrimeanauthoritiescontinuetosummonCrimeanTatarsforquestioning Crimeaamongfiveworldregionswithworstconditionsformassmedia,says FreedomHouse CrimeacutofffromSWIFTfinancialnetworksystem-massmedia UkrainianForeignMinistrysendsRussiaprotestnoteoverpremier'svisitto Crimea 4.Internationalpolitical…page7 Ukraine-Russia RussianauthoritiesfreezeassetsofRoshencompany'sLipetskfactory FifteenRussiansapplyforpoliticalasyluminUkrainesincebeginningof2015 EuropeanParliamentdemandsRussiareleasejailedUkrainianpilot Ukraine-EU Ukraine-EUsummitheldinKiev UkrainiangovernmentreportsonimplementationofEUassociationagreement UkraineimplementssecondphaseofactionplanonEUvisaliberalization- ForeignMinistry AustriancourtdeniesUSrequesttoextraditeUkrainiantycoon Ukraine-USA 2 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 USCongresscommitteeapproves200mdollarsforprovidingweaponsto Ukraine Ukraine-NATO Ukraine,NATOagencysigncooperationagreement 5.Domesticpolitical…page10 Ukrainiangovernmentannouncesnewpensionreform FirtashtakescreditforbackingKlitschko'sUDAR UkrainehonoursmemoryofOdessatragedyvictims SecurityServiceofUkrainedetainssuspectsinorganizingterroractsinKharkiv Budgetreceivesonly230dollarsofex-president'scronies'arrestedfunds- media Lyovochkin'ssisterfacescriminalcase 6.Media…page12 Firtash'sEuronewsTVlicensedforbroadcastingbynationalcouncil EightjournalistskilledinUkrainein2014 7.Economy…page13 Pro-UkraineconferenceheldinKiev Japantogive1.8bn-dollaraidtoUkraine Ukraine'spublicdebtgrowsby7bndollars Ukreximbankgetsthree-monthdeferralonEurobonds WorldBankworsensUkraine'sGDPforecast Consolidatedbudgetsurplusreaches14bnhryvnyasinfirstquarter NationalBankgrowsprofitalmostseven-fold Majorretailchainsfinedforpricefixing Ukraineraisesutilityrates 8.Energy…page14 Naftohaz'sclaimsagainstGazpromclimbabove16bndollars EuropeforwardsgastalkproposaltoRussia,Ukraine Naftohazmakes40m-dollarprepaymenttoGazprom 3 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 Ukraineexcludesrebel-heldterritoriesfromgasbalance UkrainesuspendselectricityimportsfromRussia Naftohaz'slossgrowsto3.9bndollarsin2014 Naftohazcutsgassuppliestodebtors Presidentsignsgasmarketlaw Courtarrests500mcu.m.ofgasbelongingtoUkrainiantycoon AustrianAMICEnergyclosesdealtobuyLukoil-Ukraine Ukrtatnaftaboostsnetprofitby38percent MajorwildfireoccursinChernobylzone Internationaldonorsprovide180meurosforcompletingShelterfacility 4 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 1.TOPNEWS Ukraine-EUsummitheldinKiev BrusselsandKievhaveaffirmedtheunityoftheirstancesonRussianpolicyagainst Ukraine. YoucanfindmoredetailsinthesectionsCRIMEANISSUEandINTERNATIONAL POLITICAL. AustriancourtdeniesUSrequesttoextraditeUkraine'stycoon TheUkrainianoligarchhassaidthathehadpromotedVitaliyKlitschkoasa presidentialcandidateandsupportedhisparty. YoucanfindmoredetailsinthesectionsINTERNATIONALPOLITICALandDOMESTIC POLITICAL. CrimeanauthoritiescontinuesummoningMajlisactivistsforquestioning FreedomHousehasreportedthatCrimeaisoneoftheworstpartsoftheworld whenitcomestothefreedomofpress. YoucanfindmoredetailsinthesectionCRIMEANISSUE. 2.ARMEDCONFLICTINUKRAINE'SEAST Russiabuildingupforcesforoffensive-NATO Russia'smilitarymaybetakingadvantageoftherecentcease-fireineastern Ukrainetolaythegroundworkforanewmilitaryoffensive,PhilipBreedlove, NATO'sLandForcesCommanderinEurope,hassaid. OleksandrZakharchenkosaidthatPro-Russianseparatistsplantooccupythe territoryofDonbascontrolledbytheUkrainianauthorities,theleaderofselfproclaimedDonetskpeople'srepublic.Headdedthatrebelfightersmightneed Kharkivandothercitiesinorder"todefendtheDonetskland". ZakharchenkostressedthathewouldallowUkrainianauthoritiestoholdelections ontheoccupiedterritoryonlyinlinewithlawsoftheDonetskpeople'srepublic. NormandyFourleadersdiscussUkrainianconflictonphone On30April,theleadersoftheso-calledNormandyFour-UkrainianPresident PetroPoroshenko,GermanChancellorAngelaMerkel,FrenchPresidentFrancois HollandeandRussianPresidentVladimirPutin-participatedinnegotiationsover thephone. TheUkrainianpresidentialadministrationhasreportedthattheparticipantshad supportedaUkrainianproposaltodemilitarizethetownofShyrokyneandtoinstall thereacheckpointoftheOrganizationforCooperationandSecurityinEurope. Additionally,theadministrationstressedthatRussiahadagreedtoapeacekeeping missioninDonbas.However,thespokespersonforRussianPresidentVladimir Putin,DmitriyPeskov,deniedthisreport. 5 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 USAreadytojointalksonUkraineconflictinNormandyFourformat TheUSAisopentoparticipationinthenegotiationsonthesettlementofthe conflictintheeastofUkraineandisreadytojointheNormandyFourformatif otherparticipantsagreetoit,theUSassistantsecretaryfortheBureauof EuropeanandEurasianAffairs,VictoriaNuland,hassaid. RussiaappointsnewrepresentativetoDonbascontactgroup On27April,RussianPresidentVladimirPutinappointedspecialenvoy AzamatKulmukhametovasaRussianrepresentativetothecontactgroupfor thesettlementoftheDonbassituation.RussianambassadortoUkraineMikhail Zurabovhadpreviouslyservedonthispost. Previously,KulmukhametovworkedasRussianambassadortoKuwaitand Syria. EUreadytosendcivilianassessmentmissiontoDonbas TheEUisreadytosendacivilianassessmentmissiontoDonetskandLuhansk regions,whichwouldhelptodeterminethenextstepsfortheimplementation ofsecuritypolicy,theEuropeanCouncilpresident,DonaldTusk,saidinKievon 27April. HestressedthatsendinganEUmilitarymissiontoDonbashadnotbeen discussed. AspecialenvoyoftheUkrainianForeignMinistry,DmytroKuleba,tolda roundtableorganizedbytheGorsheninInstitutethatapeacekeepingmissionto Donbas,onwhichUkrainehasbeeninsisting,wasnotanalternativetothe Minskagreementsbutameanstowardstheirimplementation. 3.CRIMEANISSUE UkrainiancourtarrestsCrimeanex-lawmakeronsuspicionoftreason On29April,theKievPecherskyydistrictcourtdecidedtodetainformer CrimeanSupremeCouncillawmakerVasylHanyshfor60daysasapreventive measure.Heissuspectedoftreason. TheUkrainianProsecutor-General'sOfficedeclaredwanted76formerCrimean lawmakerswhoaresuspectedoftreasonand,morespecifically,ofassistinga foreignstatetocarryoutsubversiveactivitiesagainstUkraineandofpublic callsforchangeofthestatebordersofUkraine. EU,UkrainianleadersagaincondemnRussianannexationofCrimea TheEUandUkrainianleadershaveonceagaincondemnedtheillegal annexationofCrimeabyRussiainajointstatementissuedafterthe17th Ukraine-EUsummit,whichwasheldinKievon27April. TheleadersexpressedconcernoverthecontinuousincreaseoftheRussian militarypresenceintheCrimeanpeninsula. 6 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 Additionally,thesidesnotedthedeteriorationofthesituationwithfreedomof pressandminorityhumanrightsinCrimea,andurgedtheself-proclaimed Crimeanauthoritiestograntinternationalorganizationsaccesstothepeninsula inordertomonitorhumanrights. YoucanfindmoredetailsabouttheUkraine-EUsummitinthesection INTERNATIONALPOLITICAL. CrimeanauthoritiescontinuetosummonCrimeanTatarsforquestioning TheCrimeaninvestigationcommitteecontinuedtosummonleadersandactivists oftheCrimean-Tatarself-styledgovernmentMajlisforquestioninglastweek.In particular,thefirstdeputyleaderoftheMajlis,NarimanDzhelyalov,the chairmanoftheMajlissecretariat,DylyaverAkiyev,andotherswereamong thosequestioned. TheywerequestionedoverclashedbetweenCrimeanTatarsandpro-Russian activistson26February2014. Crimeaamongfiveworldregionswithworstconditionsformassmedia, saysFreedomHouse TheCrimeanpeninsula,whichhasbeenannexedfromUkrainebyRussia,belongs tothefiveworldregionswiththemostunfavourableconditionsformassmedia work,areportoftheinternationalNGOFreedomHousehasread. TheorganizationnotedthatUkrainehadimproveditsindicators,movingupfrom thecategoryof"notfree"to"partlyfree". CrimeacutofffromSWIFTfinancialnetworksystem-massmedia WesternbanksrefusetocarryoutfinancialpaymentsthoughtheSWIFTsystem forresidentsoftheCrimeanpeninsula,whichhasbeenannexedfromUkraineby Russia,theRussiannewspaperVedomostihasreported. ThesameappliestopaymentsofcompaniesthatareregisteredinCrimea. UkrainianForeignMinistrysendsRussiaprotestnoteoverpremier'svisitto Crimea TheUkrainianForeignMinistryhassentRussiaanoteofprotestoveravisitof RussianPrimeMinisterDmitriyMedvedevtooccupiedCrimea,whichtookplace on27AprilandwasnotagreedwiththeUkrainianauthorities. TheministrysaidthatsuchvisitsofRussianofficialsareviewedasdeliberate actionsdirectedatanintentionalescalationinbilateralrelationsandthe demonstrationofdisrespecttonormsofinternationallaw. 4.INTERNATIONALPOLITICAL UKRAINE-RUSSIA RussianauthoritiesfreezeassetsofRoshencompany'sLipetskfactory On28April,theRussianInvestigationsCommitteefrozeassetsofUkrainian 7 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 PresidentPetroPoroshenko'sconfectionarycompanyRoshenintheRussiancity ofLipetskworth2bnroubles(38mdollars)until13September. Atthesametime,taxauthoritiescontendthatthecompany,againstwhichacriminal casehasbeenlaunched,owesthem180mroubles(3.4mdollars).Roshenisaccused ofclaimingillegalVATrefunds. FifteenRussiansapplyforpoliticalasyluminUkrainesincebeginningof2015 Sincethebeginningof2015,15Russiancitizenshaveappliedforpoliticalasylumin Ukraine,theUkrainianStateBorderServicehasreported.Onlyoneapplicanthas beendeniedtherequest. WeshallremindyouthatUkrainianPresidentPetroPoroshenkohassaidthat UkrainewouldgrantpoliticalasylumtoRussiancitizenswhowerepersecutedfor politicalreasonsintheirhomeland. EuropeanParliamentdemandsRussiareleasejailedUkrainianpilot On30April,theEuropeanParliamentadoptedaresolutiondemandingthatthe RussianauthoritiesreleaseaUkrainianpilotandamemberoftheUkrainian delegationtotheParliamentaryAssemblyoftheCouncilofEurope,Nadiya Savchenko,whohasbeenillegallyheldinadetentionfacility. ThedocumentalsourgedRussiatofreeotherUkrainiancitizens,including filmmakerOlehSentsovandasonoftheformerleaderoftheCrimeanTatarselfstyledgovernmentMajlis,MustafaDzhemilyev,Khayser. Wewouldliketopointoutthaton29April,Savchenkowastransferredfromthe detentionfacility'smedicalunittoaMoscowcityhospitalduetothedeteriorationof herhealth.However,on30April,sheaskedtobereturnedtothedetentionfacility, andtherequestwashonoured.ThelawyeroftheUkrainianpilotsaidthatthe conditionsinthehospitalwereconsiderablyworsethaninthedetentionfacility. UKRAINE-EU Ukraine-EUsummitheldinKiev On27April,the17thUkraine-EUsummitwasheldinKiev.TheEUwasrepresented byEuropeanCouncilPresidentDonaldTuskandEuropeanCommissionPresident Jean-ClaudeJuncker,whileUkrainewasrepresentedbyitsPresidentPetro Poroshenko. Inajoint statementissuedafterthesummit,theleadersaffirmedtheunityoftheir stancesontheRussianpolicyagainstUkraine.TheEUandUkrainianleadersalso calledfortheaccelerationoftheimplementationoftheMinskagreementsurgedall thesidestoimplementtheMinskagreementsquicklyandfully,aswellasstressed thatitwasMoscow'sresponsibilitytodoso. Wewouldliketopointoutthatduringthesummit,PoroshenkocalledonEuropeto recognizeUkraine'srighttobecomeamemberoftheEU.HesaidthatUkraine shouldbeabletosatisfyalltherequirementsforapplyingtotheEUmembershipin fiveyears.HealsoexpressedhopethattheEUwouldgrantUkrainiancitizensvisafreetravel. 8 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 Fortheirpart,theEuropeanleadersurgedtheUkrainianauthoritiestospeedup theimplementationofreforms. Accordingtoexperts,amongthemajorachievementsofthesummitwasthe agreementinprinciplebetweenKievandBrusselsthatfreetradebetween UkraineandtheEUwillbelaunchedfrom2016. Atthesametime,analystssaythattheUkrainianleadershipvoicednonew messagesduringthemeeting.Particularly,therewerenostatementsregarding theprospectsforUkraine'smembershipintheEUandvisaregimerelaxation. UkrainiangovernmentreportsonimplementationofEUassociation agreement On27April2015,thegovernmentofficeforEuropeanintegrationpublisheda reportontheimplementationoftheagendaonassociationandimplementation oftheEUassociationagreementbyUkraine. Thedocumentdescribesevents,whichwereplannedandheldfromSeptember 2014toApril2015.Thetextofthereportcanbefoundhere. UkraineimplementssecondphaseofactionplanonEUvisaliberalization- ForeignMinistry UkrainehascompletedthesecondphaseoftheactionplanonEUvisa liberalizationandexpectstheEuropeanCommissiontopresentitsconclusions on13May,theUkrainianForeignMinistryhassaid. UkrainianPresidentPetroPoroshenkosaidthatKievaskedBrusselstodefine thetermsandconditionsofvisa-freetravelforUkrainians.Inhiswords,the sidesagreedthatahigh-levelmeetingwillbeheldafterthe12Mayvisitbythe EUassessmentmissiontoworkoutpreparatorydocumentsaheadoftheRiga EasternPartnershipsummiton21-22May. PolishForeignMinisterGrzegorzSchetynasaidthatPolandandRomania wouldpushforthecancellationofvisasforUkrainiansandGeorgiansatthe EasternPartnershipsummitinRiga. Accordingtothedeputyheadofthepresidentialadministration,Valeriy Chalyy,RussianaggressionisanadditionalargumentfortheEuropeanUnionto postponetheintroductionofavisa-freeregime. AustriancourtdeniesUSrequesttoextraditeUkrainiantycoon On30April2015,aViennaregionalcriminalcourtdeniedtheUSDepartmentof Justice'srequesttoextraditeUkrainiantycoonDmytroFirtashtotheUSA,and allowedhimtotraveloutsideAustria. ThejudgeconcludedthattheUSAdidnotprovidesufficientevidenceof Firtash'scrime.Thecourtagreedwiththedefenceteamthatthecasewas politicallymotivated. Austria'sprosecutor'sofficehasappealedagainstthisdecision. 9 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 FirtashsuggestedincourtthathewasbeingprosecutedbytheUSAbecausehe didnotsupportYuliyaTymoshenkowhowasallegedlytheUSfavouriteinthe Ukrainianpresidentialelection. ThecourtheardthestatementsbyfirstUkrainianPresidentLeonidKravchuk, OppositionBlocMPsYuriyBoykoandSerhiyLyovochkin,andformerPartyof RegionsMPInnaBohoslovskaaswitnesses.KievmayorVitaliyKlitschkowas questionedduringaclosedvideoconference. TheUSAaccusesFirtashofcreatingacrimeringin2006andconspiringtobribe Indianofficialsforapermittoextracttitaniumthere.TheUSAgotinvolved becauseIndiantitaniumissoldontheUSmarket. TheUkrainianbusinessmanwasdetainedbytheViennapoliceinMarch2014 onawarrantoftheUSFBI.Hewasreleasedpendinganextraditionhearingon bailof125mdollarspaidbyVasiliyAnisimov,aRussianbusinessmanfrom PresidentVladimirPutin'sentourage. Asreportedearlier,FirtashandRussia'sGazpromestablishedtheRosUkrEnergo companywhichactedasintermediaryinRussiangassuppliestoUkrainein 2004-09. ReadmoreaboutFirtash'sstatementsincourtinDOMESTICPOLITICAL. UKRAINE-USA USCongresscommitteeapproves200mdollarsforprovidingweaponsto Ukraine On30April2016,theUSHouseArmedServicesCommitteeapprovedthe allocationof200mdollarstoprovidetheUkrainianarmywitharmsand training. UKRAINE-NATO Ukraine,NATOagencysigncooperationagreement On27April2015,UkraineandNATOSupportandProcurementAgencysigned theagreementoncooperationinsupportandprocurement. InNATO'swords,thisagreementestablishesaformalframeworkforNSPAtoact astheExecutingAgentfortwooftheNATOUkraineTrustFunds:Logisticsand StandardizationandMedicalRehabilitation. 5.DOMESTICPOLITICAL Ukrainiangovernmentannouncesnewpensionreform On29April2015,SocialPolicyMinisterPavloRozenkopresentedanew governmentprojectofpensionreform. Itcontainsfivekeyprovisions: 10 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 -workingcitizensfinancepensions; -specialpensions,exceptpaymentstoservicemen,areliquidatedasof2016; -afundedplan,whenaworkingcitizenfundshisorherownfuturepension,is introducedasof2017; -aprofessionalpensionsystemisintroducedwithintheframeworkofthe fundedsystem; -non-governmentpensioninsuranceisintroduced. Thegovernmentalsoagreedapackageofbillsregulatingtheintroductionofthe newpensionsystemandsentittoparliamentforconsideration. FirtashtakescreditforbackingKlitschko'sUDAR DuringacourthearinginVienna,UkrainiantycoonDmytroFirtashsaidhe providedsupportforVitaliyKlitschkoandhisUDARpartysince2012because heconsideredhimanalternativecandidateinthe2015presidentialelection.He explainedthatthisdecisionwaspromptedbythenPresidentViktor Yanukovych'srefusaltoimplementreforms. Inhiswords,theUSAdidnotapproveofKlitschko'scandidacy,allegedly favouringArseniyYatsenyukandYuliyaTymoshenko. FirtashalsospokeofhissupportfortheEuro-Maydanpro-democracyprotests andhisroleindevelopinganagreementbetweentheauthoritiesandthe oppositionaftertheshootingofprotesters. HealsoconfirmedreportsKlitschkoleftthepresidentialelectionrunafterhe, incumbentPresidentPetroPoroshenko,theformerheadofthepresidential administration,SerhiyLyovochkin,andFirtashmetinVienna."Icansaythat wehaveachievedwhatwewanted.Poroshenkobecamethepresident,Klitschko themayor,"hesaid. KlitschkosaidFirtash'sstatementswereincorrect.Inhisopinion,Firtash's lawyerchosethisstrategyonpurposetomovehisclient'scasefromeconomic topoliticaldomain. UkrainehonoursmemoryofOdessatragedyvictims MourningceremonieswereheldthroughoutUkrainiancitieson2Maytomark theanniversaryofthefireintheTradeUnionsHouseinOdessa. Forty-eightpeoplewerekilledandmorethan200injuredasaresultofmass riotsandafireintheTradeUnionsHouseincentralOdessaon2May2014. TheProsecutor-General'sOfficeissuspectingPetroLutsyuk,theformerpolice chiefinOdessaRegion,ofnegligenceduringthestreetunrestinOdessa. SecurityServiceofUkrainedetainssuspectsinorganizingterroractsin Kharkiv TheSecurityServiceofUkraine(SBU)hasreportedthedetentionof10 membersoftheKharkivPartisansgroupandthreemembersofOplot,whoare suspectedofpreparingandcommittingterrorattacksinthecity. 11 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 ThesewereUkrainiannationalsledbyRussians,itadded. TheSBUalsodetainedover30UkrainiansonsuspicionofseparatisminOdessa andKiev. Budgetreceivesonly230dollarsofex-president'scronies'arrestedfunds -media Inthefirstthreemonthsofthecurrentyear,thestatebudgetofUkraine receivedonly5,010hryvnyas(230dollars)ofthearrested1.5bnhryvnyas (68mdollars)ownedbythealliesofex-PresidentViktorYanukovych,the Ukrainianmediahavereported. Lyovochkin'ssisterfacescriminalcase TheProsecutor-General'sOfficehaslaunchedcriminalproceedingsagainst OppositionBlocMPYuliyaLyovochkina,thesisteroftheformerheadofthe presidentialadministration,SerhiyLyovochkin,andformerMPsAndriy KravetsandYuliyaKovalevskafromthePartyofRegions. Thecaseswereopenedbecausetheyhadregisteredtheirassistantswiththe parliamentstaffthoughtheydidnotcarryouttheirduties. OneofLyovochkina'sassistantswasex-PresidentViktorYanukovych's rumouredpartnerLyubovPolezhay. 6.MEDIA Firtash'sEuronewsTVlicensedforbroadcastingbynationalcouncil On29April2015,theNationalCouncilforTVandRadioBroadcastinghas licensedDmytroFirtash'sInterMediaGrouptobroadcasttheUkrainian versionofEuronewsTVonsatellite. InterMediaGrouphasbecomeanexclusivepartnerofEuronewsinUkraine. On19March,thenationalcouncilcancelledthelicenceoftheNationalTV CompanyofUkrainetobroadcasttheUkrainianversionoftheEuronews internationalchannel. EightjournalistskilledinUkrainein2014 AccordingtotheIndependentMediaTradeUnionofUkraine,eightjournalists, bothUkrainianandforeign,werekilledinUkrainein2014,whileseveralother mediaworkerswerekilledalreadythisyear,mostoftheminDonbas. TheorganizationalsoreportedthatsincetheoutbreakofhostilitiesinDonbas, morethan40mediarepresentativeswereheldascaptives.Severaljournalists arestillkeptcaptive. Themajorityofjournalistswereforcedtoleavetheoccupiedterritories becauseofthreatstotheirlivesandhealth,whilemanypublicationsceasedto exist. 12 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 7.ECONOMY Pro-UkraineconferenceheldinKiev On28April,aninternationalconferenceinsupportofUkrainewasheldinKiev. LeadersrepresentingUkraineandothercountriesdiscussedreformswhich Ukrainiansneedandtheassistance,whichtheinternationalcommunityneedto grantthemforsuccessfulimplementationofthesereforms. UkrainianPrimeMinisterArseniyYatsenyuksaidthatintotalUkrainehad received30bndollarsofinternationalfinancialassistance.Headdedthatthe countryhopedtoattract3bndollarsindirectforeigninvestmentfromthe EuropeanBankforReconstructionandDevelopmentandtheEuropean InvestmentBankbytheendof2015. Forhispart,UkrainianDeputyPrimeMinisterHennadiyZubkosaidthatthe governmentneededtospendatleast1.52bndollarsinordertoreconstruct Donbas,whichhadbeendestroyedasaresultoftheconflict. Japantogive1.8bn-dollaraidtoUkraine Japanwillprovide1.8bndollarsinassistancetoUkraine,Japan'sVice-Minister forForeignAffairsKentaroSonourasaidon27April,beforehisvisittoKiev, accordingtothepressserviceofthePetroPoroshenkoBlock. Ukraine'spublicdebtgrowsby7bndollars ThetotaldirectandguaranteeddebtofUkraineinMarchincreasedby11.9 percent,or6.91bndollars,to65.03bndollars,accordingtotheFinanceMinistry. Thetotalamountofpublicandpubliclyguaranteeddebtinthehryvnya equivalentinMarch,comparedtoFebruary,fellby90bnhryvnyas,or5.6percent, to1,520bnhryvnyas. Ukreximbankgetsthree-monthdeferralonEurobonds State-ownedUkreximbankon27Aprilmadeanagreementwithcreditorsto extendthematurityofitsAprilEurobondsbythreemonths. InJanuary-March,Ukreximbankshowedalossof4.53bnhryvnyas(206m dollars),whileinthecorrespondingperiodofthelastyearitpostedaprofitof 63.78mhryvnyas(2.9mdollars). WorldBankworsensUkraine'sGDPforecast TheWorldBankhasprojectedthatUkraine'srealGDPin2015willcontractby 7.5percent,ascomparedwithadeclineof6.8percentrecordedin2014. However,in2016,thecountry'seconomicgrowthcouldreach2percent, accordingtotheinstitution'sestimate. Also,theWorldBankexpectsthatconsumerinflationinUkrainein2015will accelerateto40percent. Earlier,theIMFandtheWorldBanksaidthatUkraine'sGDPinthecurrentyear 13 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 willdropby5.5percent. Itshouldbenotedthat,accordingtotheNationalBank,Ukraine'sGDPin January-March2015fellby15percentcomparedtothesameperiodof2014. Consolidatedbudgetsurplusreaches14bnhryvnyasinfirstquarter Ukraine'sconsolidatedbudgetshowedasurplusof13.97bnhryvnyas(635m dollars)inthefirstquarterof2015,accordingtotheFinanceMinistry. Theconsolidatedbudgetsurplusfortherespectiveperiodin2014amountedto 469.9mhryvnyas(21.36mdollars). NationalBankgrowsprofitalmostseven-fold TheNationalBankhasreportedthatitsprofitin2014totalled96.08bn hryvnyas(4.37mdollars),or6.5timesmorethanin2013. Also,itshouldbenotedthattheregulator'stotalassetsasof1Aprilwere 811.16bnhryvnyas(36.87bndollars).Itsliabilitiesincreasedto684.11bn hryvnyas(31.1bndollars),orby37.8percent. Majorretailchainsfinedforpricefixing TheAntimonopolyCommitteeofUkrainehasimposedafineof203.6m hryvnyas(9.25mdollars)onthelargestretailnetworksforabreachof legislation. Accordingtotheagency,thechainsagreedtosubstantiallyinflatepricesof consumergoods.Theviolationrelatestotheeventsof2010-11,andwas uncoveredin2013. Ukraineraisesutilityrates CentralheatingandhotwaterratesinUkrainegrewby71.5and57percent respectivelyon1May. Itshouldberecalledthatpricesofnaturalgas,electricityandcoldwater suppliesrosesubstantiallyinApril. 8.ENERGY Naftohaz'sclaimsagainstGazpromclimbabove16bndollars Thestate-runenergycompanyNaftohazUkrayinyon30Aprilfiledwiththe StockholmArbitrationTribunalitsclaimsagainstRussia'sGazpromconcerning thecontractfornaturalgastransitthroughtheterritoryofUkraine(January 2009). ItshouldbenotedthatthetotalamountofNaftohaz'sclaimstoGazprom submittedtotheStockholmarbitrationfordamagesandtransitcontract amendmentscurrentlystandsatmorethan16bndollars. GazpromofficialSergeyKupriyanovsaidthattheamountoftheRussian company'sclaimstoNaftohazexceedsKiev'sclaimstoMoscow. 14 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 EuropeforwardsgastalkproposaltoRussia,Ukraine TheEuropeanCommissionhassentitsproposalsforthetrilateralnaturalgas talkstoUkraineandRussia,accordingtoVice-PresidentoftheEuropean CommissionforEnergyIssuesMarošŠefčovič. EnergyMinisterofUkraineVolodymyrDemchyshynnotedthatthedateofthe tripartitemeetingcouldbescheduledaftertheUkrainianandRussiansidesgive theirofficialresponsetotheEuropeanCommission'sproposal.Accordingtohis estimates,thenegotiationswilltakeplaceinmid-May. Naftohazmakes40m-dollarprepaymenttoGazprom Thestate-runenergycompanyNaftohazUkrayinyon28Apriltransferred40m dollarstoRussia'sGazpromasanadvancepaymentfornaturalgassupplies. TheamountofadvancepaymentsforApril'sRussiangassuppliesmadeby Naftohaz,withoutthelatesttransfer,was70mdollars. Ukraineexcludesrebel-heldterritoriesfromgasbalance NaturalgasdeliveriestoconsumersintheterritoriescontrolledbytheproRussianseparatistsarenotprojectedinthesecondquarterof2015,according totheforecastbalanceforreceiptanddistributionofnaturalgasin2015, approvedbythegovernmenton15April. Inthefirstquarter,gassupplytotheself-proclaimedDonetskandLuhansk people'srepublicswas0.41bncu.m. Ingeneral,accordingtothedocument,Ukrainewillrequire54.24bncu.m.ofgas in2015,including19.54bncu.m.ofdomesticallyproducedgas,25.99bncu.m.of importgas,8.69bncu.m.tobewithdrawnfromundergroundstorages,and 0.03bncu.m.tobetakenfromgaspipelines. Pumpingofgasintoundergroundstoragefacilitiesisprojectedat13.9bncu.m. UkrainesuspendselectricityimportsfromRussia Duetoadecreaseinconsumption,Ukrainehasstoppedbuyingelectricityfrom Russia,thestate-runcompanyUkrenerhohassaid. Atthesametime,thecompanynotedthatthesituationcouldchangeinthe summer,becauseduringthatperiodthemaximumpowerconsumptionshould reachconsumptionvolumesseeninthewinter. Naftohaz'slossgrowsto3.9bndollarsin2014 Thestate-runenergycompanyNaftohazUkrayinyshowedalossof85bn hryvnyas(3.9bndollars)in2014whileitsrevenuewas74.4bnhryvnyas(3.4bn dollars). Ayearearlier,Naftohazpostedalossof18bnhryvnyas(818mdollars)on revenuesof75.9bnhryvnyas(3.45bndollars). 15 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 Naftohazcutsgassuppliestodebtors Thestate-runenergycompanyNaftohazUkrayinysaidon27Aprilthatitwould discontinuenaturalgassuppliestobusinesseswithdebtsforconsumedgas. Asof24April,enterprisesgeneratingelectricpowerandheatenergyhad 21.9bnhryvnyas(995mdollars)ingasdebttoNaftohaz.Comparedwiththe year'sbeginning,thisamountincreasedby69percent. Naftohaz'slargestdebtorisKyivenerhoownedbyRinatAkhmetov.The companyowes3.7bnhryvnyas(168mdollard)forgasitconsumed. Presidentsignsgasmarketlaw PresidentPetroPoroshenkoon30Aprilsignedalawonthenaturalgas market. Thedocument,amongotherthings,obligesregionalgasdistributioncompanies (mostofwhicharecontrolledbybusinessmen,includingDmytroFirtash)to payfortheuseofpublicgasdistributionnetworks. Courtarrests500mcu.m.ofgasbelongingtoUkrainiantycoon TheKievPecherskyydistrictcourton29Aprilarrested500mcu.m.ofnatural gas(worth3.6bndollars)whichbelongstoOstchemHoldingofDmytroFirtash andisstoredinthefacilitiesofUkrtranshaz,astate-ownedcompany,under criminalproceedingsconcerning5.7bnhryvnyas(259mdollars)embezzlement byofficialsofthestate-runcompanyNaftohazUkrayiny. AustrianAMICEnergyclosesdealtobuyLukoil-Ukraine AustriancompanyAMICEnergyManagementGmbH(AMIC)hasacquiredfrom Russia'scompanyLukoil100percentofthesharesinLukoil-Ukraine,which owns240petrolstationsandsixoiltankfarmsontheterritoryofUkraine. Ukrtatnaftaboostsnetprofitby38percent Ukrtatnafta(operatestheKremenchukrefineryinPoltavaregion)in2014 increaseditsnetprofitby37.8percentincomparisonwith2013,to358m hryvnyas(16.27mdollars),thecompanyhasreported. Itshouldberecalledthat43.05percentofsharesinUkrtatnaftaareownedby thestate-runenergycompanyNaftohazUkrayiny,whilePrivatGroupofIhor Kolomoyskyy,andbusinessmanOleksandrYaroslavskyyown28percent each.Thecompany'smanagementiscontrolledbyPrivatsinceOctober2007. MajorwildfireoccursinChernobylzone Awildfirecovering400hectaresoccurredintheChernobylzoneon28April. Ukraine'semergencyservicesmanagedtostopthefireonlyafterafewdays,just fivekilometresawayfromaradioactivewastestoragefacility. AccordingtotheStateServiceforEmergencySituations,thefirewasset intentionallyorwasaresultofcarelesshandlingoffire.TheInteriorMinistry 16 ©GorsheninInstituteMay2015Allrightsreserved INTHESPOTLIGHT ISSUE58(221) 05/04/2015 hasopenedcriminalproceedingswithregardtotheincident. ExpertssaythatthebackgroundradiationinChernobylandinotherUkrainiancities iswithinthenorm. Internationaldonorsprovide180meurosforcompletingShelterfacility TheG7statesandtheEuropeanCommissionhavedecidedtoallocate165meuros forthecompletionofanewconfinement(Shelterproject)attheChernobylnuclear powerplant,theEuropeanBankforReconstructionandDevelopmenthassaid. Inaddition,severalothercountriesmadeacommitmenttoallocate15meurosin total.Inparticular,Finlandwillprovide2meuros,Kazakhstan–1meuros. Thus,thefundinggapwasreducedto85meuros. Itshouldberecalledthatthetotalprojectcostis1.4bneuros. FoundedinJuly2010,GorsheninWeeklyisaweeklydigestofexpertanalysiscovering themostimportantpolitical,socialandeconomiceventsinUkraine.Itisthekey sourceofinformationaboutopinionpollscarriedoutbytheGorsheninInstituteas wellasthebestprofessionalcommentariesonrecentdevelopments. GorsheninWeeklyisavailableinRussianandEnglish. GorsheninWeeklyhasover1000subscribersintheEU,theUSA,Russia,Ukraineand othercountries.Itsregularcustomersarerepresentativesoftheembassies,the EuropeanCommission,theEuropeanParliament,theUSDepartmentofState,leading internationalanalyticalcentres,Ukrainianandinternationalmassmedia. IfyouwishtosubscribetoGorsheninWeeklypleasesendyourrequesttothefollowing e-mailaddress:[email protected]. Ourcontactinformation: 18bMalaZhytomyrskast., Kiev01001,Ukraine +380442304962 +380442304966f [email protected] Formoreinformationpleasevisitourwebsite http://gorshenin.eu/ 17 ©GorsheninInstituteMay2015Allrightsreserved
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