HomeAnalyticsDaily Highlights: 04/09/2014

Daily Highlights: 04/09/2014

NATO summit provided hope to Ukraine for receiving arms so much needed in Ukrainian army, confirmed that Ukraine is an Alliance partner, as well as urged Russia to deescalate the conflict and withdraw the troops. Terrorists supported by Russian troops continue to advance in Donbass, strengthening their positions for the peace talks in Minsk. If negotiations get disrupted, Ukrainian government is ready to introduce martial law.

Ukraine

●      President Poroshenko announced he is ready to give a cease-fire order in Donbass  if peace talks start in Minsk. Parliament speaker Turchunov said during closed session of the Parliament that if negotiations get be disrupted, introduction of the martial law will be initiated. Among other questions on the agenda of the session were issues of expelling Russina invasion, anti-crisis measures by the Government, and support of temporary refugees from the combat areas.
●      Prime Minister Yatsenyuk presented the Government action plan for “The Country Renewal”, which includes stopping of Russian aggression and re-establishment of Ukrainian sovereignty, activation of the association agreement with EU and introduction of visa-free travel in EU, rehabilitation of combat actions participants, rebuilding of Donbass, state power decentralization, new tax system and corruption elimination.
●      Government decided to liquidate the “Ukrainian Energy Company”, that as of today owns the State stakes in energy-generating and regional energy distribution companies.
●      A department for issues of war prisoners, hostages release and search for the lost in action has been created within the Security Services of Ukraine.
●      National Bank have stabilized the exchange rate of Hryvna via continuous interventions on interbank level: 12.52 UAH/USD (+1 cop), 16.47 UAH/EUR (-4 cop), 3.35 UAH/10RUR.

Kyiv

●      As per decision of the Kyiv City Council, the use of fireworks and other pyrotechnics is being prohibited during mass events.
●      All land related transactions in Kyiv will be managed through transparent land auctions, which local authorities hope will bring 150 bln. UAH to the city budget. The program of budget deficit reduction by 3 bln. UAH have been adopted in Kyiv, where 1.8 bln. UAH have been already covered by the state budget subventions.

War In Ukraine

●      Near Mariupil, a Russian attack including tanks, which appear to be a reconnaissance in force, has been repelled. However, fortified positions near Shyrokino have been destroyed with multiple rocket launcher shelling. Governor Taruta claimed that situation is under control but evacuation being considered in case of escalation. Battalion “Kyiv Rus” have been encircled near Debalceve as a result of advance of dominant forces of terrorists and Russian troops.
Ukrainian military camp have been shelled from across the border with multiple rocket launcher system “Smerch”.
●      Construction of fortifications around strategic objects, transport routes and cities have recently started in Kherson region. Also, Ukrainian Army is building a defense line in Luhans’k and Donets’k regions.
●      Terrorists are shelling residential areas of Donets’k and Luhans’k with mortars and multiple rocket launchers. Five civilians have been killed in Donets’k over the last 24 hours, residential and public buildings destroyed.

International

●      During a joint press conference with NATO Secretary General Anders Fogh Rasmussen, president Poroshenko claimed that agreements have been reached on deepening of multilateral collaboration, supply to Ukrainian army of various lethal and non-lethal arms, including high-precision weapons, as well as on creation of trusts to financially support Ukraine in development of logistics, communications, military command systems and cyber-defense. Ukraine and NATO urged Russia to stop military actions in Donbass and return Crimea, annexation of the which will never get recognition. A decision to impose additional sanctions should be adopted by the EU on the 5 of September.
●      France has temporarily frozen transfer of Mistral class helicopter carrier to Russia, as conditions of its delivery haven’t been met, i.e a cease-fire and conflict resolution in eastern Ukraine haven’t been reached. However, ships construction is continuing according to Radio Liberty information.

Trends

●      The West has finally realized that without arms supplies Ukraine has no chances in the war with Russia. Military intervention however is not being considered, as if at this stage the agression could be stopped through negotiations. Visiting Kyiv Senator McCain said during a press conference, that the violation of the Budapest Memorandum is a serious strike against the international security system, and it will undermine future nuclear disarmament efforts.

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