HomeAnalyticsDaily Highlights: 08/12/2014

Daily Highlights: 08/12/2014

The Ukrainian authorities plan to establish a ceasefire in Donbass from December 9; however, they are ready to respond to provocations. The Russian army strengthens its presence in Donbass. The government wants to cut down budget expenses and to increase the tax burden of citizens.

Events In Ukraine

●      The military prosecutor’s office could not carry on an investigation about Ukrainian army losses in Ilovaysk due to the impossibility of interrogation of newly elected deputies and officers of the Ministry of Internal Affairs.
●      The Ministry of Finance is preparing changes to the tax code to introduce an additional 30% tax on the excess of expenses over the income, and to increase powers of employees of the fiscal service. It is expected to reduce the government budget expenses in 2015 by 25% and the deficit is going to be about 3.7%.
●      Mr. Groysman, the speaker of the Ukrainian Parliament, would like to make changes to the Constitution by October 2015 in order for the local elections to take place on a new constitutional basis.
●      Ukraine plans to import electricity from several countries. Russia has not confirmed yet whether it would be able to satisfy the demands for 1500MW of power or not.
●      Problems with power generation in Ukraine are growing: the 3rd power unit of the Southern Ukrainian Atomic Power Station was disconnected from the grid.
●      The Prosecutor General’s Office claims that money of the former Prime Minister Arbuzov has not disappeared after the court decision of unblocking the accounts.
●      The Ukrainian Helsinki Union has said that about 70% of decisions of local courts and 90% of the International Courts are not executed in the country.
●      The National Bank continues to weaken hryvnia: 15,53 UAH/$ (+0,11 UAH), 19,19 UAH/€ (+0,22 UAH), 2,92 UAH / 10 rub (-0,01 UAH).

War in Ukraine

●      During the past 24 hours, the positions of the Ukrainian troops were under fire for more than 40 times. Russian forces suffered heavy losses as a result of the fighting near Gorlivka. Clashes near Stanitsa Lugans’ka, Debaltsevo, in the Donetsk airport and near Mariupil are continuing.
●      The Russian Federation army pushed aside “Cossacks” and took control over the town of Krasnyi Lutch and turned it into a fortified place, a place of military equipment disposition and an ammunition warehouse.
●      Representatives of the OSCE claim that the agreement has been reached to begin a ceasefire in Donbas from December 9th. The authorities of Security Services of Ukraine (SSU) accepts the shift of the start date of negotiations in Minsk to 12 December. Tuesday, December 9th has to become “a day of silence”.
●      The SSU are working on the exchange of the military personnel and hostages captured by terrorists for the rebels of the LNR and DNR using the “all for all” approach.

Ukraine and the World

●      At the meeting of the Atlantic Council in Washington, Mr Payette, the ambassador of the USA in Ukraine, named the conditions for Ukraine’s accession to NATO as the execution of reforms and expression of will by the people of Ukraine.
●      The Assistant President of the Russian Federation declared that Russia would not sue France for non-delivery of helicopter carriers of the class “Mistral”. Moscow will be satisfied either with the return of an advance payment, or with the transfer of the ships.
●      The government of Japan, following the EU and the USA, imposed sanctions against a number of figures in terrorist “republics” of Donetsk and Lugansk.
●      The USA and the EU started investigation of the threat to civil aviation by flights of the Russian military planes. The results of investigation will be announced in March of 2015.
●      The USA considers the continuation of negotiations in Minsk as a chance for Russia to exit the crisis and opportunity to execute previously reached agreements.
●      The Minister of Defence of Canada Nicholson during his visit to Kiev said that deliveries of lethal weapons to Ukraine are possible only after reaching consensus with other members of NATO. For now, not-lethal means and medicine will be delivered and advice provided.
●      The head of the committee on international affairs of the Russian Federation declared the beginning of a new long cold war between Russia and the USA.


●      According to Maidan activists, submission by “Petro Poroshenko Block” to the Parliament of a new law draft on strengthening of responsibility for calls for disobedience, indicates the return of the current authorities to the policy pursued by the president Yanukovych.
●      The government introduced a plan of reforms, which intend to strengthen the tax pressure, coould completely send small and medium business “to the shadows”. Introduction of the tax on excess of expenses over the income will legalize corruption.
●      According to the head of “Maidan of Foreign Affairs” Yaremenko, deputies of the newly elected Verkhovna Rada behave as if the country isn’t at war. It can lead to rapid dismissal of the parliament.


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