IN THE SPOTLIGHT - Gorshenin Institute

INTHESPOTLIGHT
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CONTENT
1.Topnews…page5
2.ArmedconflictinUkraine`seast…page5
IntenseclashescontinueinUkraine'seast
Poroshenko,Merkel,HollandeandPutindiscusssituationinUkraine
Merkel,HollandereceivePutin'sproposalsonUkrainebeforeMoscowtalks–US
SecretaryofState
Pro-RussianseparatistsinDonetskpeople'srepublicannouncefull-scale
mobilization
NATOsaysRussiasentmodernheavyweaponstoDonbas
Another“humanitarianconvoy”fromRussiacrossesUkrainianborder
OSCEfindsheavyweaponsonterritorycontrolledbypro-Russianrebels
Pro-RussianrebelsopenfireatOSCEmissioninLuhanskRegion
7,000peoplekilledinUkraine'sDonbas-Poroshenko
Ukraineevacuates4,500peoplefromantiterroristoperationarea
Ukraine'ssecurityservicekillsRussianofficerinchargeofMariupol'sshelling
3.Internationalpolitical…page10
Ukraine-Russia
Ukraineimposessanctionsagainst160Russiancompanies
RussiannationalsnowneedtravelpassportstoenterUkraine
UkrainianparliamentbansbroadcastingofmoviesmadeinRussia
RussiafilesnewchargesagainstUkrainianfilmdirector
UkrainianshaveprogressivelynegativeattitudetoRussia–poll
Crimeanissue
RussiatosetupdronecentreinCrimea
RussianauthoritiescontinuetodetainCrimeanTatars
Ukraine-EU
Ukrainianparliamentratifiesagreementonjointmilitarybrigadewith
Lithuania,Poland
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EUmayliftsanctionsagainstYanukovych's,Azarov'ssons–media
PolishdeputyfinanceministertohelpreformUkrainianeconomy
Ukraine-US
ObamamullingarmssupplyforUkraine
4.Domesticpolitical…page13
UkrainianparliamentvotesinfavourofcancellingMPs'immunity
Parliamentpasseslawsonregionalpolicy,unionofterritorialcommunities
MPspreliminarilyapprovestartofpolicereform
VeniceCommissionsuggestsUkrainesuspendvettinglaw
UkrainianparliamentpasseslawonNationalGuard
Ukrainianpresidentsignslawincreasingtermofmilitaryservice
Parliamentpassesbillonmilitary-civiladministrations
Ukrainianpresidentvetoeswomen'sretirementat55
UkrainianparliamentstripsYanukovychofpresidentialtitle
UkrainesendsarrestwarrantforYanukovych,AzarovtoRussia
Courtarrestsformerrevenuesministerinabsentia
Chiefprosecutorsayscaseoncrackdownonstudents'protestsolved
ParliamentrecognizesInternationalCriminalCourtjurisdictionoverDonbas
crimes
Prosecutorssaysover15mdollarsembezzledatNaftohaz,Ukrtranshaz
ParliamentagreestohavejudgeinTymoshenko'scasearrested
Mykolayiv'sex-mayorsentencedtoeight-yearimprisonment,confiscationof
property
MPsfailtocollectenoughsignaturestodismissprosecutor-general
UkrainianpresidentappointsKharkiv,Chernivtsiregionalgovernors
GeorgiannationalappointedUkraine'sdeputyjusticeminister
CourtsaysappealagainstverdictonPukachtobegivenpublichearing
5.Media…page19
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Firtash,LyovochkinbuyoutRussia'sstakeinInterTVChannel
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6.Economy…page20
IMFtodecideonnewloantoUkraineinnearfuture
Ukraine'sforeignreservesshrinkto6.4bndollars
NationalBankcancelscurrencyauctions,raisesinterestrate
Hryvnyahitsnewhistoriclow
Centralbankincreasesofficialgoldpriceby28.5percent
Inflationacceleratesto3.1percent
TemporaryadministrationintroducedinFirtash'sbank
MotorSichstrikesdealtosupplyenginestoAustria
7.Energy…page21
GazpromcutsgaspriceforUkraine
SummergassuppliestoUkrainepossibleafterdebtsettlement–Russia's
EnergyMinistry
SlovakiasaysreadytocoverthirdofUkraine'sgasneeds
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1.TOPNEWS
Pro-RussianseparatistscontinueshellingUkrainianpositions
Morethan5,360peoplehavebeenkilledasaresultofthearmedconflictin
Ukraine
YoucanfindmoredetailsinthesectionARMEDCONFLICTINUKRAINE'SEAST
LeadersofRussia,Germany,FranceandUkrainetomeetinMinsk
PutinsuggestsgrantingautonomytoDonetskandLuhanskRegions–media
reports
YoucanfindmoredetailsinthesectionARMEDCONFLICTINUKRAINE'SEAST
Ukraine'scentralbankscrapspeg,hikinginterestratefrom14percentto
19.5
Thenationalcurrencysunktoanewhistoriclow
YoucanfindmoredetailsinthesectionECONOMIC
2.ARMEDCONFLICTINUKRAINE'SEAST
IntenseclashescontinueinUkraine'seast
Pro-RussianseparatistscontinueshellingpositionsoftheUkrainianmilitary
andresidentialareasintheantiterroristoperationzonealongtheentirelineof
contact.
TherebelshavefocusedtheiroffensiveontheareasurroundingDonetsk
Region'sDebaltseve,amajorrailwayhub.TheUkrainianInteriorMinistry
estimatedthat4,000pro-RussianseparatistsandRussiansoldierswerefighting
there.
TheUkrainianantiterroristforcesretreatedfromthetransithubcityof
VuhlehirsknearDebaltseve,overwhichtheyhadfoughtoverthepastfew
weeks.Thecityispracticallydestroyed,theLB.uanewsandanalysiswebsite
hasreported.
Themilitantsoftheself-proclaimedDonetskpeople'srepublicalsocontinued
shellingHorlivka,AvdiyivkaandotherpopulatedareasofDonetskRegion,
whichledtonewciviliandeaths.
On4February,pro-Russianrebelsusedheavyartillerytofireataresidential
districtinDonetsk.Adaycarecentre,acityhospitalanddentalclinicwere
subjectedtoshelling.
Also,numerousreportssaythaton8Februaryapowerfulexplosionshattereda
chemicalfactoryinKuybyshevskyydistrictontheeasternoutskirtsofDonetsk.
Theblastblewoutwindowsinhouseslocatedafewkilometresfromthe
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explosionepicentre.Accordingtomediareports,themilitantsusedthefactory's
premisestostoreammunition.
TherebelsalsobecamemoreactiveinthedirectionofLuhansk,firingartillery,
mortarsandtanksattheLuhanskRegioncitiesofShchastya,Stanytsya
Luhanska,NovotoshkivkaandTryokhizbenka.
Poroshenko,Merkel,HollandeandPutindiscusssituationinUkraine
On8February,UkrainianPresidentPetroPoroshenko,GermanChancellor
AngelaMerkel,FrenchPresidentFrancoisHollandeandRussianPresident
VladimirPutinheldatelephoneconversationtodiscussoptionsforthe
settlementofthearmedconflictineasternUkraine.
Thepartieshavereachedanagreementtoholdameetinginthe“Normandy
format”(Ukraine,Germany,France,andRussia)on11FebruaryinMinsk.In
addition,theyhaveagreedthattheMinsktalksshouldbeprecededby
preparatorynegotiationsofrepresentativesofthe”NormandyFour”foreign
ministersinBerlin(9February)andameetingofthetrilateralcontactgroup
(Ukraine,Russia,OSCE),withtheparticipationofrepresentativesoftheselfproclaimedDonetskandLuhanskpeople'srepublics(10February).
On6February,MerkelandHollandetravelledtoMoscowtodiscusswithPutina
jointpeaceplanaimedatimplementingtheMinskagreement.Beforethevisit,
on5February,theleadersofGermanyandFranceagreedtheirpositionwiththe
UkrainianpresidentinKiev.
Theparticipantshavenotdisclosedanydetailsofthenegotiations,butitis
knownthattheGermanchancellorandtheFrenchpresidentproposedcreating
ademilitarizedzoneof50-70kminDonbas.Inthiscase,therebelswouldhave
toleaveDonetskandLuhansk,aswellastheAzovcoastalarea.
ItshouldbenotedthatbeforehisvisittoRussia,Hollandesaidthat“Franceis
notfavourabletoUkraine'sentryintoNATO,”addingthathisstatementwas
addressedtotheRussianswho“arestillworried”overthisissue.
Also,Poroshenko,MerkelandUSVice-PresidentJoeBidenmetduringthe
Munichsecurityconferenceon7Februaryanddiscussedpossiblesolutionsto
thecrisisintheeastofUkraine.
Merkel,HollandereceivePutin'sproposalsonUkrainebeforeMoscow
talks–USSecretaryofState
BeforetheirvisittoMoscow,GermanChancellorAngelaMerkelandFrench
PresidentFrancoisHollandereceivedoffersfromRussianPresidentVladimir
PutinregardingthesettlementoftheconflictinDonbasandpreparedtheirown
proposals,USSecretaryofStateJohnKerrysaidduringhisvisittoUkraineon5
February.
TheNewYorkTimesquotedaWesterndiplomatinformedonthesubjectofthe
planthattheRussianpresidenthadofferedhisWesterncounterpartsaroadmap
forcreatinginUkraineapermanentenclave,thatwouldbesimilartoMoldova's
breakawayDniesterregionorGeorgia'sAbkhazia.
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TheUkrainianweeklyZerkaloNedelireportedthatinhisproposal,Putinpushed
fortheimplementationofconstitutionalreformenvisioningfederalizationin
Ukraine,aswellasthecreationoftheDonetskandLuhanskautonomous
republics.Additionally,hesaidthattheUkrainianauthoritiesshouldpresent
guaranteesofimmunityandirrevocabilityforofficialswhowouldbeelected
duringsnappolls(whicharereferredtoasthesecondroundofelections,based
ontheassumptionthatthefirstroundwhichtookplaceon2November2014is
recognizedasvalid).Putinalsopointedtotheneedtoimplementthelawonthe
specialstatusofDonbas.
TheRussianpresidentalsostressedthattheUkrainiangovernmentshould
establishdirectdialoguewiththeleadersoftheself-proclaimedDonetskand
Luhanskpeople'srepublics,withdrawitsmilitaryfromtheregionsandlegalize
theso-calledpeople'smilitia,whicharerepresentedbymilitaryformationson
theterritoryoftheseparatistentities.
ExpertsattheGorsheninInstitutebelievethat,althoughitmaysound
paradoxical,theinitialgoaloftheRussianleadershipwastopreserveDonbas
withinUkraine.
Putinisnotreadytotakeontheloadofsubsidizingthedevastatedregions,the
expertexplained.TheRussianpresidentisinterestedinputtingthisburdenon
thecriticallyweakeconomyofUkraine.Inaddition,hehasapoliticalinterestin
keepinginUkrainethissignificant(fromanelectoralpointofview)pro-Russian
regionasaleverofinfluenceonKiev'sdecisions,includingthoseinforeignpolicy.
TheexpertspointedoutthatifPutin'sconditionsareaccepted,Ukrainewill
returnunderMoscow'spoliticalprotectorateinthenearfuture,andtheEastern
Partnershipprojectwillfailcompletely.
Atthesametime,theyexpressedconfidencethatUkrainewillnotacceptsuch
proposals.“NowthereareenoughbalancesintheUkrainianpower.Itisdifficult
toimagine,forexample,thattheincumbentparliamentimplementssuch
unfavourableagreements,”theGorsheninInstituteexpertsnoted.
Pro-RussianseparatistsinDonetskpeople'srepublicannouncefull-scale
mobilization
AgeneralmobilizationwillbeannouncedintheDonetskpeople'srepublicafter9
February.
Accordingtotheleaderoftheself-proclaimedDonetskpeople'srepublic,
OleksandrZakharchenko,theyplantomobilizeupto100,000people.
NATOsaysRussiasentmodernheavyweaponstoDonbas
NATOhasevidencethatRussiansoldiersandweaponshadbeensenttotheeast
ofUkraine,thealliancespokesperson,OanaLungescu,saidon3February.
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SheaddedthatRussiahaddispatchedtoUkrainehundredsofunitsofheavy
weaponry,includingmodernequipmentusedexclusivelybyRussia,overthepast
fewweeks."Suchequipmentcannotbeusedbytheseparatistsindependently
sinceitrequiressubstantialtraining.Thesearemodernmissiles,tanks,armoured
vehicles-anentirerangeofheavyweaponswhichonecannotbuyintheopen
marketinDonetsk,"Lungescunoted.
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WealsofoundoutthattheSecurityServiceofUkraine(SBU)hadexposedthe
schemeforconcealingthedeathsofRussiansoldiersinUkraine.TheSBU
reportedthatRussiancommandershadbeenchangingthedocumentsof
RussianswhodiedinDonbasandwhosinceMay2014hadbeensentfrom
UkrainetothespecialfacilitycalledGruz-200(Cargo-200,militarycodeforKIA),
whichisbasedinRostov-on-Don.
Ukraine'sDefenceMinistryon8FebruaryreportedthattheUkrainianmilitary
seizedseveral“Shmel”infantryflamethrowersthatareinservicewiththe
Russianarmy.
WewouldliketopointoutthatduringhisaddressattheMunichsecurity
conferenceon7February,UkrainianPresidentPetroPoroshenkoshowed
RussianpassportsandmilitarydocumentsofRussiansoldierswhohadfoughtin
Ukraine.
TheFinancialTimesearlierquoteditsownsourcesassayingthatinorderto
convinceRussianPresidentVladimirPutintosignapeacedeal,Poroshenko
threatenedhimattheendofAugustwithpostingonlineinformationabout
numerousdogtagsofRussiansoldierswhowereeithercapturedorkilledin
Ukraine,andwithcontactingtheirmothersandspouses.
Another“humanitarianconvoy”fromRussiacrossesUkrainianborder
The13thso-called“humanitarianconvoy”fromRussiaconsistingof170lorries
arrivedintheoccupiedpartsofDonetskandLuhanskregionson8February,
accordingtotheRussianEmergenciesMinistry.
Asbefore,theRussianauthoritiesdidnotcoordinatethecargodeliverywithKiev.
TheUkrainianborderservicereportedthatUkrainianborderguardswerenot
allowedtoinspectthetrucks.
Aswasreported,themilitantsoftheDonetskandLuhanskpeople'srepublics
alwaysnoticeablystepuptheircombatactivityafterreceivinga“humanitarian”
cargofromRussia.
OSCEfindsheavyweaponsonterritorycontrolledbypro-Russianrebels
ThespecialmonitoringmissiontoUkraineoftheOrganizationforCooperation
andSecurityinEurope(OSCE)hasfoundamilitarycampwithheavyweapons
(14tanksT-72andsevenBMP-1armouredvehicles)withoutidentifyinginsignia
ontheterritorycontrolledbypro-Russianseparatistsfromtheself-proclaimed
Donetskpeople'srepublic,themission'sreportof6Februaryhasread.
OSCErepresentativesalsofoundinthewesternsuburbsofDonetsk,whichis
occupiedbytherebels,aT-72tankwithoutidentifyinginsignia,whichwas
positionedtotargetthewestofDonetsk.Likewise,themissionobservedthe
presenceoftwoT-72tanks,alsowithoutidentifyinginsignia,tothewestofthe
Petrivsketown,whichisheldbytheforcesoftheDonetskpeople'srepublicandis
located70kmfromDonetsk.
Pro-RussianrebelsopenfireatOSCEmissioninLuhanskRegion
On4February,observersoftheOSCEmonitoringmissiontoUkrainewere
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subjectedtoshellingontheterritoryoftheself-proclaimedLuhanskpeople's
republic,theOSCEpressservicehasreported.
Wewouldliketoremindyouthatthisisnotthefirstcasewhenthemission's
vehicleshadbeenfiredatontheterritorycontrolledbytheseparatists.Noone
wasinjuredintheseincidents.
7,000peoplekilledinUkraine'sDonbas-Poroshenko
DuringtheperiodoftheconflictinDonetskandLuhanskregions,Ukrainehas
lost7,000people,including1,430servicemenand5,600civilians,Ukrainian
PresidentPetroPoroshenkosaidduringtheMunichsecurityconferenceon7
February.
Earlier,theUNreportedthat5,360peoplewerekilledand12,240wereinjured
duringtheDonbasconflictasof3February.
Atthesametime,accordingtoFrankfurterAllgemeineSonntagszeitung,German
intelligenceagenciesestimatethenumberoffatalitiesat50,000people.
Ukraineevacuates4,500peoplefromantiterroristoperationarea
On28January-7February,Ukrainianemergencyworkersandvolunteers
evacuated4,500peoplefromtheantiterroristoperationarea,theUkrainian
StateEmergenciesServicehasreported.
Wewouldliketopointoutthaton6February,Ukrainiansoldiersmanagedto
agreewithpro-Russianrebelsonthesettingupoftheso-called"greencorridor"
toevacuateciviliansfromtheterritorysurroundingDebaltseve,whereheavy
fightingisunderway.Aspreviouslyreported,theonlyroadoutofthecityhad
beenconstantlyshelledbytheseparatists.
TheUNreportedthatasof6February,therewere980,000registeredinternally
displacedpersonsinUkraine.Intotal,morethan1.5millionpeoplehavebeen
internallydisplacedbytheconflictintheeastofUkraine.
Ukraine'ssecurityservicekillsRussianofficerinchargeofMariupol's
shelling
OperativesoftheUkrainiancounterintelligenceserviceshavekilledaRussian
officerwithcallsignPepel(Ash),whohadbeendirectingtheshellingof
Mariupolon24Januaryandallhissubordinates,theheadoftheSecurity
ServiceofUkraine(SBU),ValentynNalyvaychenko,saidon4February.
HeaddedthattheoperationhadbeencarriedoutnearthevillageofBezimenne
inNovoazovskDistrictlocatedontheterritorycontrolledbypro-Russianrebels.
ThebodieshavebeenevacuatedtoRussia.
Earlier,theSBUreportedaboutthedetentionoftwoUkrainiannationalswho
hadbeeninvolvedintheshellingofMariupol.
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3.INTERNATIONALPOLITICAL
UKRAINE-RUSSIA
Ukraineimposessanctionsagainst160Russiancompanies
Ukrainehascancelledlicensesandpermitsof160Russiancompanies,hence
joiningagroupofWesterncountrieswhichhadintroducedsanctionsagainst
Moscow,UkrainianEconomyMinisterAivarasAbromaviciussaidon6
February.
Headdedthatthefinallistofindividualsonthelistofsanctionsisbeing
checkedandwillbereleasedoncethepresidentapprovesit.
RussiannationalsnowneedtravelpassportstoenterUkraine
On3February,UkrainianPrimeMinisterArseniyYatsenyuksigneda
governmentresolutionunderwhichRussiancitizenswillberequiredtohavea
validtravelpassporttoenterUkrainestartingfrom1March.
Thisstep,theprimeministerexplained,willallowtosubstantiallyimprovethe
controloverthestateborderandensuretheinterestsofUkrainiannational
security.
UkrainianparliamentbansbroadcastingofmoviesmadeinRussia
On5February,theVerkhovnaRadaofUkraineapprovedamendmentstothelaw
underwhichitisbannedtodistributeandpubliclyscreenRussianmoviesthat
weremadeafter1991,aswellasanymovieswhichpromotetheactivityofthe
Russianlaw-enforcementagencies.
Thelawwillbeenactedtwomonthsafteritspublication.
RussiafilesnewchargesagainstUkrainianfilmdirector
UkrainianfilmdirectorOlehSentsov,whoisillegallyheldinaRussian
detentionfacility,hasbeenpresentedwithnewchargesofillegaldealingwith
armsandexplosivesbyaRussianprosecutor'soffice,thepublicationOtkrytaya
Rossiyaquotedon2Februarythelawyersofthefilmdirectorassaying.
WeshallremindyouthatSentsovwasdetainedinCrimeainMay2014andthen
placedonthelistofterrorists.
On5February,Sentsov'slawyerDmytroDinzesaidthattheRussian
Prosecutor-General'sOfficehadrecognizedthedualcitizenshipofthemovie
director,butdecidedtoprosecutehimasaRussiancitizenshipinthisparticular
casesincehehadlivedinCrimea.
Aspreviouslyreported,amemberoftheUkrainiandelegationtothe
ParliamentaryAssemblyoftheCouncilofEurope,militarypilotNadiya
Savchenko,isstillinRussiancustody.On15December2014,shewenton
hungerstrike.SeverallawmakersoftheEuropeanParliamentfollowedsuitto
demonstratetheirsupportofSavchenko.
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UkrainianshaveprogressivelynegativeattitudetoRussia–poll
TheresultsofapollconductedinDecember2014bytheKievInternational
InstituteofSociologyandRussia'sLevadaCentresuggestthatonly37percentof
UkrainianshaveapositiveattitudetoRussia(incomparisonwith48percentof
respondentsinSeptember)and48percentviewitnegatively(41percentin
September).
Atthesametime,theresultsofthepollshowthattheattitudeofUkrainiansto
RussiaremainsmorepositivethantheopinionRussiansholdofUkraine.As
manyas36percentofRussiansperceivedUkrainepositivelyinSeptember,but
theirnumberdroppedto24percentinDecember.ThenumberofRussian
respondentswhohaveanegativeviewofUkrainerosefrom55percentto63
overthesameperiodoftime.
CRIMEANISSUE
RussiatosetupdronecentreinCrimea
RussiawillcreatedronecentresintheoccupiedCrimeanpeninsulaandalsoin
theSouthernfederalandNorth-Caucasianfederaldistricts,Russian
EmergenciesMinisterVladimirPuchkovhassaid.
Thecentreswillberesponsiblefor"comprehensivemonitoringofterritory",he
added.
TheUkrainianNationalSecurityandDefenceCouncilsaidbeforethatRussia
hadbeenactivelyusingdronesforspyingontheborderwiththeCrimean
peninsula,aswellasontheeasternborderwithUkraine.
RussianauthoritiescontinuetodetainCrimeanTatars
On4February,theCrimeangovernmentdetainedCrimeanTatarAsan
ChebiyevforparticipatinginarallyinsupportofUkraine'sterritorialunity,
whichhadtakenplaceinSimferopolon26February2014.Hewasquestioned
andthenreleased.
On7February,anotherCrimeanTatarwhoparticipatedinademonstrationlast
year,EskanderKantemirov,wasdetained.Hishousewasalsosearched.On8
February,aSimferopolcourtputtheactivistundercustodyforaperiodoftwo
months.
Previously,AkhtemChyyhoz,deputyheadoftheMajlisoftheCrimeanTatar
People,wasdetainedandlaterarrestedfororganizingandparticipatinginthe
samerally.
TheMajlisalsosaidthatCrimeanTatarshavebeensubjectedtoanewwaveof
repressioninCrimea.
Itshouldalsobenotedthaton8FebruaryaSimferopolcourtarrested
OleksandrKostenko,anactivistoftheEuro-MaydaninKiev,suspectinghimof
causingbodilyharmtoanofficerofCrimea'sBerkutriotpolice.
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UKRAINE-EU
Ukrainianparliamentratifiesagreementonjointmilitarybrigadewith
Lithuania,Poland
TheUkrainianparliamenton4February2015ratifiedtheagreementbetween
thegovernmentsofLithuania,PolandandUkraineonestablishingajoint
militarybrigade.
Thedocumentwassignedon19September2014.
TheUkrainianDefenceMinistrynotedthatthemilitaryunitwillconsistof545
Ukrainian,upto3,500Polishand350Lithuanianservicemen.Thecommand
willbeheadquarteredinLublin(Poland).
EUmayliftsanctionsagainstYanukovych's,Azarov'ssons–media
TheEuropeanUnionmayliftsanctionsagainstcertainformerUkrainian
authoritiesastheUkrainianProsecutorGeneral'sOfficehasfailedtoprovide
anystrongevidenceagainstthem,thenewsandanalysiswebsiteYevropeyska
Pravdahassaid,citingasourceinUkraine'sForeignMinistry.
Inparticular,sanctionsmayberelievedforViktorYanukovych(Jr.),the
youngersonofUkraine'sex-president,OleksiyAzarov,thesonoftheex-prime
minister,formerjusticeministerOlenaLukash,formerfirstdeputyheadofthe
presidentialadministrationAndriyPortnov,aswellasformerchiefsofthe
SecurityServiceIhorKalininandOleksandrYakymenko.
However,asthewebsitenoted,theUkrainianProsecutorGeneral'sOfficeinthe
pastmonthheldanumberofproceduralactionsreducingtheriskthatthe
EuropeanUnionwillremovesanctionsagainstanumberofkeyformerofficials.
Aspreviouslyreported,theEUimposedsanctionsagainst18officialsofthe
previousgovernmenton5March2014.
PolishdeputyfinanceministertohelpreformUkrainianeconomy
Poland'sDeputyFinanceMinisterArturRadziwillhasbeenauthorizedbythe
PolishgovernmentforprovidingsupportofeconomicreformsinUkraine,
PolishFinanceMinisterMateuszSzczurekhassaid.
Earlier,UkrainianPresidentPetroPoroshenkosaidthatfamousPolish
economistLeszekBalcerowiczwillhelpimplementreformsinUkraine.
InaninterviewwiththenewsandanalysiswebsiteLB.ua,Balcerowicznoted
thatcurrentlyUkrainewasmakingitsfourthattempttocarryoutreforms,
addingthattherewillbenoothersuchopportunityinthefuture.
UKRAINE-US
ObamamullingarmssupplyforUkraine
USPresidentBarackObamaisconsideringthepossibilityofsupplyingdefence
weaponstoUkraine,USSecretaryofStateJohnKerrysaidduringhisvisitto
Ukraineon6February.
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Accordingtothediplomat,theUSpresidentwillmakethedecisionafterthe
MunichsecurityconferenceandthevisitofGermanChancellorAngelaMerkelto
WashingtonD.C.scheduledfor9February.
AsnotedbyFedericaMogherini,EUHighRepresentativeforForeignAffairsand
SecurityPolicy,theUSdecisionwilldependonwhethertheEuropeanleaders
succeedinthepeacetalks.
Itshouldberecalledthatthepro-Russianmilitantshavesteppeduptheirattacks
ineasternUkraine,whichstirredaseriousdebateintheUnitedStatesregarding
suppliesoflethalweaponsfortheUkrainianarmy.
AccordingtothenewsagencyReuters,ifObamafailstomakethisstep,agroupof
12RepublicansandDemocratsledbyRepublicanSenatorJohnMcCainwillbe
readytodevelopabillthatwouldobligetheUSpresidenttoprovidearmsto
Ukraine.
ItshouldbenotedthatanumberofEUandNATOmemberstates(theUK,
Germany,Franceandothers)refusedtosupplyweaponstoKiev.Inaddition,
GermanForeignMinisterFrank-WalterSteinmeierrecommendedthattheUS
refrainfromsupplyinganyweaponstoUkraine.
Atthesametime,DefenceMinisterofLithuaniaJuozasOlekassaidthathis
countrysentweaponsrequestedbytheUkrainiangovernmentasfreeassistance.
PresidentPetroPoroshenkoexpressedconfidencethattheUnitedStatesand
otherforeignpartnerswillagreetosupplyarmstoUkraine.
4.DOMESTICPOLITICAL
UkrainianparliamentvotesinfavourofcancellingMPs'immunity
On5February2015,theUkrainianparliamentresolvedtoreferforreviewbythe
ConstitutionalCourtthepresident'sbillamendingtheconstitutionbyliftingMP's
immunityandlimitingtheimmunityofjudges.
Inparticular,thebillcancelstheclausesayingMPsmaybecriminallypunished,
detainedorarrestedonlywithparliamentconsent.
Thebillalsosaysthatjudgeswillremainimmunefromchargesforactions
committedduringtheimplementationofjudicialfunctions,exceptforcaseswhen
theyissueddeliberatelyunlawfulrulings,violatedtheoathofajudgeor
committedadisciplinarycrime.ItwillbeuptotheSupremeJusticeCouncil,not
parliament,togiveconsenttothearrestofjudges,thedocumentreads.
SpeakerVolodymyrHroysmanpredictsthatgiventheprocedures,thedocument
canbeadoptedasawholeinSeptember.
Parliamentpasseslawsonregionalpolicy,unionofterritorialcommunities
On5February2015,theUkrainianparliamentpassedabillonthefoundationsof
stateregionalpolicy,accordingtowhichregionalcouncilswillensurethe
adoptionofregionaldevelopmentstrategies.
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Thedocumentintroducesnewnotions:amacroregion,whichisagroupof
severalregions,andamicroregion,whichisapartofaregion.Theregionsare
oblasts,theAutonomousRepublicofCrimea,thecitiesofstatesubordination
KievandSevastopol.
On5February,parliamentpassedanotherbillonterritorialcommunityunions.
Accordingtothedocument,ifsmallvillagesunite,theywillnotlosetheirstatus,
but"willbeabletoclaim60percentofcitizens'incometax".
SpeakerVolodymyrHroysmanexpectsthelawstofacilitatedecentralization
reformsandsecuremorefundslocally.
MPspreliminarilyapprovestartofpolicereform
On5February2015,theUkrainianparliamentpassedinthefirstreadingthe
governmentbillonreformingtheInteriorMinistry.
Thedocumentliquidatesanumberofdepartments,includingthedepartment
forfightingorganizedcrime,alongwithtransportandveterinarypolice.
FirstUkrainianDeputyInteriorMinisterEkaZguladzesaidthatthislawwould
usherinthefirststageoftheInteriorMinistry'sreform.Shealsosaidthat
UkrainewasplanningtosetupasinglespecialtaskforcesimilartotheUS
SWAT.
VeniceCommissionsuggestsUkrainesuspendvettinglaw
VeniceCommissionheadGianniBuquicchiohassaidthattheprocessofvetting
inUkraineshouldbesuspendedtoworkoutthelawonthecleansingof
authorities.
HeexplainedthattheexistingvettinglawwasbadandtheVeniceCommission's
reviewsofitwerehighlycritical.
UkrainianPresidentPetroPoroshenkonotedthattheUkrainianlegislation
doesnotprovideforasuspensionoflaws.HeassuredBuquicchiothatthe
documentwouldbeworkedoutwithinamonth.
Thesecondstageofvettingisunderway,duringwhichhigh-rankingofficials,
includingtheprimeministerandcabinetmembers,willhavetheirassets
checked.
UkrainianparliamentpasseslawonNationalGuard
TheUkrainianparliamentpassedthelawontheNationalGuardon3February
2015.
ItauthorizesthepresidenttoappointtheNationalGuardcommanderbasedon
theinteriorminister'snomination.Previously,thiswasparliament'scall.
ThebillputsthetotalnumberofNationalGuardmembersat60,000.
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Ukrainianpresidentsignslawincreasingtermofmilitaryservice
On5February2015,PresidentPetroPoroshenkosignedthelawadvancingthe
procedureofmilitaryserviceandsocialprotectionofUkrainiansdoingtheir
militaryserviceduringanextraordinaryperiod.
Inparticular,thedocumentupstheperiodofmilitaryservicefrom12to18
months.Theupperconscriptionagehasbeenraisedfrom25to27years.
Thesameday,parliamentapprovedthebilltighteningservicemen's
responsibilityandgivingarmycommandersadditionalrights.
Parliamentpassesbillonmilitary-civiladministrations
On3February2015,theUkrainianparliamentadoptedabillonmilitary-civil
administrationsintheantiterroristoperationarea.
Administrationswillbesetuponthepresident'sdecisionshouldexecutive
committeesandlocalcouncilprovedysfunctional.
Ukrainianpresidentvetoeswomen'sretirementat55
PresidentPetroPoroshenkohasvetoedthelawextendinguntil2022theright
toearlyretirementforwomenwhoturned55iftheperiodoftheirpensionable
serviceisatleast30yearsandonconditionthattheyresignfromjob,theleader
oftheRadicalPartyparliamentaryfaction,OlehLyashko,hassaid.
LeszekBalcerowicz,anauthorofPolishreforms,saidinaninterviewwiththe
newsandanalysiswebsiteLB.uathatitwasawrongdecisiontopassthelaw
giventhecurrenteconomicsituationinUkraine.
ItisthesecondtimethatPoroshenkohasexercisedhisrighttoveto.Previously,
heblockedthelawbanningtheevictionofforeigncurrencyloanholdersunder
mortgageagreements.
UkrainianparliamentstripsYanukovychofpresidentialtitle
On4February2015,theUkrainianparliamentadoptedabillstrippingViktor
Yanukovychofhispresidentialtitle.
AccordingtotheProsecutor-General'sOffice(PGO),duringhistimeinoffice
Yanukovychhassetupanorganizedcriminalringwhichseizedpowerinthe
stateandexertedpressureonprivatebusinessandthebankingsystem.ThePGO
addedthatundertheex-president,theUkrainianeconomyhadincurredlosses
amountingto100bnhryvnyas(3.85bndollarsatthecurrentexchangerate).
Prosecutor-GeneralVitaliyYaremahassaidthatover104mdollars,122m
Swissfrancsand22meurosownedbyformerhigh-rankingUkrainianofficials
werefrozenintheEU,theUSAandSwitzerland.Over2.2bndollarsindeposits
andsecuritieswerearrestedinUkrainianbanks.Inhiswords,theex-officials'
movableandimmovablepropertywasalsoarrested.
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UkrainesendsarrestwarrantforYanukovych,AzarovtoRussia
On5February2015,UkrainianProsecutor-GeneralVitaliyYaremasaidthathe
hadsenttheRussianProsecutor-General'sOfficearequesttofindanddetain
formerPresidentViktorYanukovych,formerPrimeMinisterMykolaAzarov,
formerInteriorMinisterVitaliyZakharchenko,formerProsecutor-General
ViktorPshonkaandformerSecurityServiceofUkrainechiefOleksandr
Yakymenko.
Courtarrestsformerrevenuesministerinabsentia
On4February2015,theKievPecherskyydistrictcourtupheldamotionbythe
Prosecutor-General'sOfficetoputformerRevenuesandLeviesMinister
OleksandrKlymenkoincustody.
Prosecutor-GeneralVitaliyYaremahassaidthattheformerministerhadsetup
asystemofprivateenterpriseswhich,throughachainoffakebusiness
operations,managedtoevadetaxesandcustomsfeestotheamountofover
6.1bnhryvnyas(235mdollarsatthecurrentexchangerate).
EarlieraUkrainiancourtarrestedformerPresidentViktorYanukovych,
formerPrimeMinisterMykolaAzarovandformerFinanceMinisterYuriy
Kolobovinabsentia.
AlltheseformerofficialswereputonInterpol'swantedlist.
Chiefprosecutorsayscaseoncrackdownonstudents'protestsolved
Investigatorshaveidentifiedalltheorganizersandparticipantsinthe
crackdownonthepeacefulprotestonMaydanintheearlyhoursof30
November2013andthebeatingofstudents,Prosecutor-GeneralVitaliy
Yaremasaidon2February2015.
Hesaidthatfourcommandersinquestion,whoheldtoppostsintheBerkutriot
policesquadsatthetime,wereservednoticesofsuspicion.Accordingto
Yarema,theorganizersincludedformerInteriorMinisterVitaliy
Zakharchenko,hisdeputiesandthechiefoftheKievpolice.
Yaremaalsosaidthatpolicehaddetainedfourmenonsuspicionofkillingtwo
andwoundingeightEuro-MaydanactivistsinKiev'sMykhaylivskaStreetin
February2014.Theorganizersandparticipantsinthisattackwereputon
wantedlist,headded.
InteriorMinisterArsenAvakovsaidthatthearmsconfiscatedfromthe
detainedsuspectshadbeenissuedfromtheInteriorMinistry'sarmourybythe
formerheadoftherearsupport,PavloZinov,actingontheinstructionof
formerInteriorMinisterZakharchenko.
Earlier,thePGOgroupedallcriminalproceduresonseriousinjuriesandkillings
onEuro-Maydanintoone.
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ParliamentrecognizesInternationalCriminalCourtjurisdictionover
Donbascrimes
On4February2015,theUkrainianparliamentrecognizedthejurisdictionofthe
InternationalCriminalCourtwhichsitsinTheHagueovercrimesagainst
humanityandmilitarycrimesbyseniorRussianofficialsandheadsofthe
terroristorganizations,theself-proclaimedDonetskandLuhanskpeople's
republics.
MPsinstructedtheCabinetofMinistersandtheProsecutor-General'sOfficeto
collectfilesandevidenceforcomplaintstotheinternationalcourt.
InJanuary2000,UkrainesignedtheRomeStatuteestablishingthefunctions,
jurisdictionandstructureoftheInternationalCriminalCourt,howeverin2001
theConstitutionalCourtfoundsomeitsprovisionstobeincontradictiontothe
ConstitutionofUkraine,andruledthatitcanberespectedonlyifthe
constitutionisamended.
TheNationalSecurityandDefenceCouncilofUkraineobjectedtothe
ratificationoftheRomeStatute.ConsideringtheannexationofCrimeaand
Russia'saggressioninDonbas,thiscanonlybedoneifthedocumentisalso
ratifiedbyRussia,itsaid.
ExpertsbelievethatsincetheUkrainianparliamenthasrecognizedthe
jurisdictionoftheInternationalCriminalCourt,anyobjectionsagainstits
ratificationarenolongervalid.
Earlier,theCounciloftheEuropeanUnionremindedUkrainethatunderthe
associationagreement,itcommitteditselftoratifytheRomeStatute.
Prosecutorssaysover15mdollarsembezzledatNaftohaz,Ukrtranshaz
TheProsecutor-General'sOffice(PGO)hasopenedacriminalcaseagainstthe
officialsoftheoilandgascompanyNaftohazUkrayinyandthegastransport
companyUkrtranshazonsuspicionofinflicting400mhryvnyas(15.38mdollars
atthecurrentexchangerate)worthoflossesonthestate,thePGOpressservice
saidon4February2015.
Someemployeesofthesecompaniesembezzledthestatefundsbytransferring
themtobankaccountsoffakefirms,itsaid.
ThePGOdidnotspecifywhenthecrimewascommitted.
ParliamentagreestohavejudgeinTymoshenko'scasearrested
On5February2015,theUkrainianparliamentauthorizedthearrestofKiev
PecherskyydistrictcourtjudgeRodionKiryeyevwhoissuedtheverdictinthe
YuliyaTymoshenkocase.
KiryeyevhasbeenatlargesinceJuly2014.Accordingtomediareports,hehas
beenhidinginCrimea.
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TheUkrainianNewsagencyhasquoteditssourcesassayingthatthe
Prosecutor-General'sOfficehasservedKievPecherskyydistrictcourtjudge
SerhiyVovkwithanoticeofsuspicionovertheunlawfulconvictionofYuriy
Lutsenko.
Mykolayiv'sex-mayorsentencedtoeight-yearimprisonment,confiscation
ofproperty
On6February2015,acourtofappealfoundformerMykolayivmayor
OleksandrBerdnykovguiltyofstealingover2.5mdollarsinforeign
investments.Thecourtsentencedhimtoaneight-yearimprisonmentand
confiscationofhalfofhisproperty.Hewasalsostrippedoftherighttohold
seniorpostsforthreeyears.
MPsfailtocollectenoughsignaturestodismissprosecutor-general
UkrainianMPshavefailedtocollectenoughsignaturestopassaresolutionon
dismissingProsecutor-GeneralVitaliyYarema,thenewsandanalysiswebsite
LB.uahassaid.
PetroPoroshenko'sBlocparliamentaryfactionheadYuriyLutsenkosaidthatit
wasreasonabletokeepYaremainthepostforseveralmoremonthssincehis
officehadbeenrathereffectivelately.
Theparliamentarycommitteeonfightingcorruptionearlierinitiatedthe
collectionofsignaturesrequiredforraisingtheissueofYarema'sdismissal.
Meanwhile,mediareportedthatYaremahasfiledhisresignationstatement.
UkrainianpresidentappointsKharkiv,Chernivtsiregionalgovernors
On3February2015,PresidentPetroPoroshenkoappointedIhorRaynin,a
deputyheadofthepresidentialadministration,asKharkivregionalgovernor.
DeputyEducationandScienceMinisterOleksiyDniprovwasappointedanew
deputyheadofthepresidentialadministration.
On6February,PoroshenkoappointedOleksandrFishchukasChernivtsi
regionalgovernor.
Fishchukwasamemberofparliamentofthepreviousconvocation,electedon
theFatherlandpartylist.Beforethis,hehadbeeninchargeoftheStateTax
AdministrationinChernivtsiRegion.
GeorgiannationalappointedUkraine'sdeputyjusticeminister
On4February2015,theCabinetofMinistersappointedGeorgiannationalGia
Getsadzeasdeputyjusticeminister.
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In2003-05,hewasGeorgia'sdeputyjusticeministerandtheGeorgian
president'senvoytoImereti.
RuslanKorzh,managingpartnerfortheCISattheATKearneyconsultingfirm,
wasappointeddeputyeconomicdevelopmentminister.
TetyanaPopova,anadviserforthedefenceminister,andArtemBidenko,the
headoftheOutdoorAdvertisingAssociation,wereappointeddeputy
informationpolicyministers.
CourtsaysappealagainstverdictonPukachtobegivenpublichearing
On6February2015,theKievcourtofappealstartedhearinganappealagainst
theverdictissuedagainstformerpoliceGenOleksiyPukachwhowas
convictedtolifeinprisonforthemurderofjournalistHeorhiyGongadze.It
alsodecidedonapublichearingofthecase.
Anewboardofjudgeshasbeenconsideringtheappealsince24November
2014.Untilnow,allthesessionshadbeenclosedtopublic.
On29January2013,theKievPecherskyydistrictcourtsentencedPukachtolife
inprisonforthemurderofjournalistHeorhiyGongadze.
ValentynaTelychenko,representingthejournalist'swidowMyroslava
Gongadze,suggestedthatDnipropetrovskregionalgovernorIhor
KolomoyskyyhadbeenusingPukach'scaseinhisbusinessinterests.Shesaid
thatbyhypingupthecaseinthemediaoutletshecontrols,Kolomoyskyyhas
beentryingtoputpressureonViktorPinchuk,abusinessmanandson-in-law
offormerPresidentLeonidKuchmawhomPukachidentifiedasthecustomer
forGongadze'smurder.
In2013,PinchukfiledalawsuitwithLondonHighCourtagainstKolomoyskyy,
demandingthesharesofKryvyyRihIronOreCombineanddividendsonthem
worthsome2bndollars.
5.MEDIA
Firtash,LyovochkinbuyoutRussia'sstakeinInterTVChannel
GDFMedialimitedanditssubsidiaryInterMediaGrouplimited(ownedby
DmytroFirtashandSerhiyLyovochkin)haveboughta29-percentstakeinthe
UkrainianTVchannel“Inter”fromRussia's“FirstChannel”anda10-percent
stakefromtheUkrainiancompany“PegasTelevision”,thepressofficeofGroup
DF(ownedbyFirtash)reportedon3February.
Thus,atthemomentFirtashandLyovochkinhold100percentofsharesinthe
channel.
ItshouldbenotedthatearliertheUkrainianparliamentregisteredabillthat
prohibitsRussianinvestorsfromowningequitycapitalinUkrainianTV
channels.
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Asreported,theProsecutor-General'sOfficeisconductingcriminalproceedings
regardingtheforgeryofsignatureduringthesaleoftheInterchannelin2005.
6.ECONOMY
IMFtodecideonnewloantoUkraineinnearfuture
TheIMFmissioniscompletingitsworkinKievandwillsoonannounceits
opinionregardinganewaidprogrammeforUkraine,IMFCommunications
DirectorGerryRicesaidon5February.
AccordingtoUkraine'sNationalBankchiefValeriyaHontareva,theIMFBoard
ofDirectorswillmakeitsfinaldecisionbasedonthemission'sreportinlate
February-earlyMarch2015.
Asreportedearlier,attherequestoftheUkrainianauthorities,theIMFis
consideringthepossibilityforreplacingthecurrentstand-byprogrammewith
anextendedfundfacility(EFF).
Accordingtoexperts,Ukrainewillinevitablyfaceadefaultwithoutnewmassive
creditlinesfromtheIMF,theZerkaloNedeliweeklyhassaid.
Ukraine'sforeignreservesshrinkto6.4bndollars
Ukraine'sinternationalreservesinJanuary2014decreasedby14.8percentto
6.42bndollars,accordingtotheNationalBank.
SuchadropintheinternationalreserveswasduetotherepaymentbyUkraine
ofitspublicdebtintheamountof624.4mdollars,aswellas518mdollars'
worthofinterventionsontheinterbankmarket(theNationalBanksold464m
dollarstothestate-runenergycompanyNaftohazUkrayinytomakepayments
forimportednaturalgas,whiletherestwasdisbursedthroughforeignexchange
auctions).
NationalBankcancelscurrencyauctions,raisesinterestrate
TheBoardoftheNationalBankhasdecidedtoabolishdailycurrencyauctions
andscraptheindicativeexchangerateforthehryvnyafrom5Februaryinorder
toestablishthesinglemarketrateontheinterbankforeignexchangemarket.
TheIMFsaidthattheregulatormadetherightdecision.
ItshouldalsobenotedthattheNationalBankdecidedtoraiseitsinterestrate
from14to19.5percentfrom6February.
Hryvnyahitsnewhistoriclow
On6February,theofficialexchangerateoftheUkrainiannationalcurrencyfell
bymorethan5hryvnyas–fromUAH/USD18.00toUAH/USD23.13,thus
reachinganewhistoricalminimum.TheeurorosefromUAH/EUR20.60to
UAH/EUR26.39.
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Ukraine'sinterbankcurrencymarketclosedthesessionwiththehryvnya/dollar
quotesatUAH/USD24.7-25.5.Thehryvnya/euroquotesstoodatUAH/EUR
27.7-28.6.
Centralbankincreasesofficialgoldpriceby28.5percent
On6February,theNationalBankincreasedtheofficialrateofgoldby28.5
percentto292,370hryvnyasper10troyounces.
Inflationacceleratesto3.1percent
Consumerpricesroseby3.1percentinJanuary2015,accordingtotheState
StatisticsService.
TemporaryadministrationintroducedinFirtash'sbank
TheDepositGuaranteeFundon6Februaryintroducedtemporary
administrationinNadraBank,whichisownedbyDmytroFirtash,foraperiod
ofthreemonths,theNationalBankhasreported.
Themainreasonfortheintroductionofexternalmanagementwasthebank's
insufficientcapitalization.
MotorSichstrikesdealtosupplyenginestoAustria
Zaporizhzhya-basedcompanyMotorSichhassignedacontracttosupply
enginesforAustriancompanyDiamondAircraft,accordingtoMotorSich
PresidentVyacheslavBohuslayev,thenewsandanalysiswebsitecapital.uahas
reported.
Accordingtotheofficial,MotorSichwillproduceturbopropengineAI-450Sfor
lightaircraftDA50-JP7.
AsnotedbythechairmanofMotorSich'ssupervisoryboard,AnatoliyMalysh,
underthecontractterms,theaircraftwillbecertifiedattheexpenseofthe
Austrianside,andtheUkrainiansideshouldsupplyupto100AI-450Senginesa
year.
ThemainmarketforMotorSich'sproductsisRussia.
7.ENERGY
GazpromcutsgaspriceforUkraine
Duetothedeclineinglobaloilprices,thecontractpriceofRussiannaturalgas
forUkraineinthefirstquarterhasdroppedto329dollarsper1,000cu.m.,
GazpromofficialSergeyKupriyanovhassaid.
ThepriceinNovemberandDecemberwas378dollarsper1,000cu.m.
ItshouldalsobenotedthatGazpromhasreceivedanadvancepaymentof107m
dollarsfromthestate-runenergycompanyNaftohazUkrayinyforFebruarygas
deliveries.
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SummergassuppliestoUkrainepossibleafterdebtsettlement–Russia's
EnergyMinistry
Russiawilldiscussapossible“summergaspackage”withUkraineonlyafterthe
latterrepaystheremainingdebt,RussianEnergyMinisterAleksanderNovakhas
said.
Itshouldberecalledthattemporarygasagreements,alsocalledthe“winterpackage”,
wereagreedintheautumnof2014,afterlengthynegotiationsbetweenBrussels,
KievandMoscow.TheagreementswillexpireattheendofMarch2015.
GazpromclaimsthatUkraine'sNaftohaz,astate-runenergycompany,owesit2.4bn
dollarsforgassupplies,whiletheUkrainiancompanyconsidersthatitsdebthas
beenfullyrepaid.Variousestimatesofthedebtareduetothesides'different
opinionsastothepriceatwhichUkraineboughtgasinthefirsthalfof2014.This
conflictisnowbeingconsideredintheStockholmarbitration.
SlovakiasaysreadytocoverthirdofUkraine'sgasneeds
Startingfrom1March,thecapacityoftheUzhhorod-Vojanypipeline,whichisused
forreverse-flowgassuppliesfromSlovakiatoUkraine,willbeincreasedfrom11.5bn
cu.m.to14.5bncu.m.peryear,SlovakPrimeMinisterRobertFicosaidatthemeeting
withPresidentofUkrainePetroPoroshenkoinKievon6February.
Thus,SlovakiawillbeabletocoverathirdofUkraine'sdomesticgasneeds.
ItshouldbenotedthatUkraineon5Februaryresumednaturalgasimportsfrom
Hungaryat5m-6mcu.m.perday.
Also,Polandisexpectedtoresumegassuppliesinthenearfuture.
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