HomeAnalyticsDaily Highlights: 14/11/2014

Daily Highlights: 14/11/2014

Tentative version of the coalition agreement has been published. Observers and international organizations report full Russian readiness to continue aggression in Donbass. G20 summit opens in Australia.

Ukraine

●      President Poroshenko conducted an emergency meeting with leaders of security services as the threat of Russian aggression is growing. He said that the country has forces and resources to protect its sovereignty. NSDC speaker told during the briefing that militants are getting ready for an offensive, but Ukrainian army is ready to expel it.
●      Prime Minister Yatsenyuk is surprised by the fact that sanctions against Russia haven’t yet been implemented according to the law adopted by the Parliament on 14th of August 2014. He is convinced that the Government shouldn’t buy coal from Russia and DPR/LPR terrorists, but private companies started to do so.
●      SSU Head Nalyvaychenko informed, that criminal proceedings for separatism have been opened against a large number of Party of Regions deputies from former composition of the Parliament. Around 200 persons have been arrested so far, being accused of terrorism and subversive activities.
●      Tentative version of the coalition agreement for the newly elected Parliament was published on the web site of ‘’Petro Poroshenko Block’’. The party representative Rosenko said that proposals for the new Government composition made by ’’Popular Front’’ are premature and should be done only after approval of the coalition in the Parliament, which has its first meeting planned for the 25th of November.
●      National bank slightly increased the official exchange rate vs. major currencies: 15.41 UAH/USD (-15cop), 19.20 UAH/EUR (-20cop), 3.34 UAH/10 RUB (-6cop).
●      The Antimonopoly Committee of Ukraine demands from “Kyivstar”, which owns more than 50% of the radio frequency resource, to give up part of frequencies necessary for other operators for implementation of the 3G standard. Fully featured functioning of this standard requires the redistribution of spectrum between operators.
●      The Antimonopoly Committee evidenced a cartel agreement between the major retail chains, but the imposed fine will be symbolic. New rules will be introduced in the retail market, regulating “extra services” that are actually extortions by retailers against suppliers.
●      Ukraine is ready to pay extra for Russian natural gas only if weather conditions worsen.
●      Positive trade balance of Ukraine reached 4.2 bln. USD for the first nine months of this year, compared to a deficit of 5.94 bln. USD for the same period of the previous year.

Kyiv

●      Kyiv City Council renamed and returned historical names to 10 central streets. Decision to rename part of the Instlitutska street to the Heavens Hundred Heroes Street was postponed until the next meeting.

War in Ukraine

●      Militants continuously shell and attack Ukrainian army positions in Donetsk and Luhansk regions. Attempts to seize towns close to Donetsk airport have been expelled. The airport itself is under Ukrainian army control. Seven servicemen were killed during the day. According to UN estimates, the number of casualties in the Donbass exceeded 4,100.
●      Foreign Minister Klimkin said that Ukraine is not going to return the Donbass by force, and will look for a political solution to the conflict.
●      The observation mission of the OSCE in the Donbass expanded to 500 people, 350 of whom will work in the territory controlled by the DPR and LPR.
●      According to the Prime Minister Yatsenyuk, the cost of gas and electricity supplied  to the territories occupied by DPR and LPR militants, will be offset from the reserved social payments and pensions for the population of these regions.
●      NATO Secretary General Stoltenberg said that five channels of financial support have been already opened to Ukraine. The Alliance has already stepped up military cooperation with the country. He also noted the high readiness of Russian forces for the continuation of aggression.
●      Crimean administration prohibited exports of “socially important‘’ products from peninsula territory.

International

●      President Obama at the opening of the G20 summit in Australia said the US as the only superpower in the world is playing a leading role in countering the Russian aggression in Ukraine.
●      Senator McCain criticized US President for not providing weapons to Ukraine.
●      According to the Polish company PGNIG, natural gas supplies from Russia have been reduced, which led to the termination of the reverse supplies to Ukraine.
●      Bloomberg News noted that market capitalization of Apple Inc. surpassed the same of all the Russian stock market, which has fallen sharply this year.
●      President Putin on the eve of the G20 summit, said that Russia is ready for the dramatic decline of oil and carbohydrates prices. Rosneft can be allocated more than $20 billion from the National Welfare Fund, if such request is well grounded. Putin doesn’t intent to raise the question of lifting the sanctions during the summit.
●      Net profits of “Gazprom” in rubles for the first nine months of this year fell by almost 13 times, while the its costs have increased by 3%.

Trends

●      Deputies from ’’Svoboda’’ and ’’The Right Sector’’ will not join the coalition and will try to create an effective constructive opposition to the majority coalition that is being formed.
●      All attempts to recognize Russia as an aggressor and to deprive it of the veto right in the UN Security Council are failing so far, also due to the fact of absence of official recognition of war in Donbass by Ukrainian authorities.

 

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