HomeAnalyticsDaily Highlights - 23/08/2014

Daily Highlights – 23/08/2014


●      National Flag Day have been celebrated in Ukraine. President Poroshenko participated in the Ceremony of hoisting the flag on Sofyivska square.
●      German Chancellor Angela Merkel visited Kyiv with a formal call. During negotiations, she has expressed her vision of Ukrainian decentralization, calling that «federalization», claimed that Germany will never agree to recognize Russian annexation of Crimea and occupation of Ukrainian territory, as well as that Germany is ready to welcome those injured in combat operation in Donbass for further treatment in Germany. At the same time, direct military aid is not being considered. However Germany is ready to provide 500 mlm. EUR for renovation of the damaged economy of the region. Ukrainian Prime Minister Yatsenyuk, during negotiations with the Chancellor, suggested that German companies could participate in the development of the Ukrainian energy infrastructure. During the meeting with mayors of the eastern cities and Kyiv, Merkel urged them to develop cooperation in the framework of twin cities.
●      Humanitarian convoy for refugees, prepared by Akhmetov, have finally reached  Mariupol.


●      Security Services of Ukraine reported ит capture а criminal group, engaged in preparation of terrorists acts in Kyiv region. False calls of mining of the capitals infrastructure continue to бе received by the emergency service.

War in Ukraine

●      As reported by the OSCE, Russian «humanitarian convoy» час left the territory of Ukraine. As per information from Ukrainian media, equipment from military factories and dead bodies of Russian troops have been taken out by that convoy. The convoy haven’t been customs cleared on the border. Russia considers to continue provision of such «humanitarian aid» validation with Ukraine.
●      Terrorists continue sporadic shelling of the cities under their control, civilians being killed and injured – 3 persons were killed in Donets’k, several injured, 68 people have been wounded in Luhans’k. Donbass-Arena stadium have been slightly damaged during one of the shelling.
●      Heavy fights are ongoing for Ilovays’k and in the south of Luhans’k region. Attempts  to break through the Ukrainian border by motorized terrorists groups and Russian military troops, have been evidenced within several parts of Ukrainian border in Donbass. Russian artillery is shelling positions of Ukrainian Army, border checkpoints on the territory of Donets’k Region. In Sedovo on the seashore of Azov sea, border checkpoint have been destroyed with the shelling from the multiple rocket launcher system “Grad”.
●      Railroad have been blasted in Kharkiv region during the train passage. Fortunately no casualties have been reported. Police treats this as an act of terrorism.
●      Medzhlis of the Crimean Tatars has excluded from its ranks all governmental officials who have been collaborating with Russian occupation authorities.


●      VIce-President of the US Biden, during the telephone call with President Poroshenko, promised to increase macroeconomic aid to Ukraine and informed that the US will participate in the conference of the donor states and investors, planned to take place in Kyiv in September.
●      Fitch rating agency downgraded the long term default rating of Ukraine to CCC, which demonstrates quite speculative assessment of credit risks. As per the agency assessment, Ukrainian industrial production will decline by -6.5% in 2014, GDP growth is not being expected in 2015-2016.


●      Information that Europe, while claiming to support territorial integrity of Ukraine, actually doesn’t provide any valuable support neither in economic nor in military aspects, is being unfortunately confirmed. The later being  confirmed, as the planned aid to revitalize the destroyed economy of the eastern Ukraine is marginal, as well as by France refusal to terminate the sale of Mistral class helicopter carriers to the Russian Black Sea Fleet and sale of the German gas corporation RWE to the Russian  business, engaged in the reverse gas supply to Ukraine.

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