HomeAnalyticsDaily Highlights: 05/12/2014

Daily Highlights: 05/12/2014

Problems in Ukrainian energy sector are growing. The fight for the Donetsk airport is not ceasing. Russia prevents the expansion of OSCE monitoring in the combat zone in the Donbass.

In Ukraine

●      The Cabinet of Ministers will present an action agenda before December 9th.
●      National company “Naftogaz” has made an advance payment of $ 378 million to “Gazprom” for the 1 bln m3 of natural gas.
●      The head of “Ukrinterenergo” has been arrested on suspicion of corruption in the coal supply contract with South Africa.
●      3rd unit of Zaporizhzhya NPP put back into operation after unsheduled repair. Nevertheless the electric energy in the power grid remains scarce.
●      Security Service of Ukraine (SSU) confirmed that Russian secret serices have been involved in crimes against Maidan activists, and worked in close contact with SSU and Ministry of Interior Affairs.
According to the head of the SSU Nalyvaychenko, Ukraine should establish a national tribunal to investigate crimes on the Maidan.
●      Russia is ready to sell electricity to Ukraine only under condition of its supply to the Crimea.
●      The debt on VAT refunds from the beginning of the year has not changed substantially and its amount reached 15 bln UAH ($1 bln).
●      NBU continues to weaken the hryvnia: 15.42 USD/$ (0.12 UAH), USD 18.98/€ (+0,12 UAH), USD 2.93/10 Russian rubles (0.12 UAH). Due to the payments for energy supplies and to the current debt servicing, Ukrainian monetary reserves fell down to $10 bln.

War in Ukraine

●      All the assaults on Donetsk International Airport by DPR militants and Russian mercenaries have been beaten off by Ukrainian “cyborgs”. The airport remains under full control or Ukrainian army.
Fighting is continuing along the whole front line in the Donetsk and Lugansk regions. 6 Ukrainian soldiers have been killed during the day.
●      Donetsk is still subject to indiscriminate attacks by militants. Two civilians have been killed and ten wounded. Many homes and infrastructure installations of three city districts have been destroyed.
●      Cabinet simplified the procedure of granting the status of anti-terrorist operation participant.
●      Ukraine asked the Interpol to include the leaders of the terrorist Lugansk and Donetsk “republics” on the international wanted list.
●      According to the Command of the Armed Forces of Ukraine, drinking by troops is the problem which leads to offenses and serious non-combat losses of personnel. It is recommended to limit the sale of alcohol in the combat zone.
●      At least 200 combat vehicles, lorries and fuel trucks combined in several military columns crossed the border of Ukraine from Russia’s side during the last day.

Ukraine and the world

●      Chairman of the US Helsinki Commission Senator Cardin said that Russia via its aggression in Ukraine violated the basic principles of the OSCE. The organization should focus on the implementation of its basic obligations.
●      After the meeting of OSCE foreign ministers, Russian Foreign Minister Lavrov spoke out against the expansion of the monitoring of the Ukrainian-Russian border until obtaining guarantees of security and non-prosecution of Donets’k and Luhans’k “people republics” terrorists.
●      Russian opposition leader Kasparov predicts that Moscow leaders are ready to a bloody suppression of possible anti-government protests.
●      According to the Minister of Foreign Affairs of Lithuania Linkevičius, the international community is ready to accept the DPR and LPR as the terrorist organizations only after Ukraine does it itself.


●      By expert opinion, the problems of Ukrainian energy sector are: sabotage in government in favor of Russia, the inability to organize the logistics of resources available and the reluctance to destroy the existing corruption schemes. This economy branch requires immediate reorganization guided by a strong crisis management team.
●      According to most experts and observers, ceasefire scheduled for December 9 will not be accepted by militants.


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