HomeAnalyticsDaily Highlights: 10/12/2014

Daily Highlights: 10/12/2014

Negotiations between the Ukrainian government and the IMF mission are continuing. Ukrainian army doesn’t open fire in compliance with the “silent mode” in the Donbass war zone. President Poroshenko went Australia for an official visit.

Events In Ukraine

●      The Cabinet approved the business ombudsman, who will represent the interests of Ukrainian and foreign business community. He is the former European Commissioner for Taxation and Customs Union Mr. Shemeta.
●      Zaporizhia city council did not approve a resignation of the mayor Mr. Sin, who wrote the statement under pressure applied by the deputy of Verkhovna Rada Lyashko.
●      The Ukrainian government has resumed talks with the IMF to provide additional volumes of stand-by credit, but the decision on the next tranche is not approved yet due to the lack of real reforms in the country. According to the IMF estimation, Ukraine needs additional credit of $ 15 billion right now.
●      The former chairman of the Security Service of Ukraine Mr. Marchuk was assigned as a head of the newly created Secretariat for Security Cooperation with NATO and the EU.
●      The US and Canada are ready to train Ukrainian army sergeants. The start of negotiations on this program is scheduled for December 15th.
●      State Migration Service announced that biometric passports required for visa-free entry into the EU for Ukrainians will be issued starting from January, 2015.

●      Ukraine’s natural gas imports from the EU almost doubled compared to November, 2014. Reverse supply volumes are comparable with deliveries from Russia.
●      The volume of the advertising market in Ukraine has decreased by 20%. Small growth is expected only in the Internet advertising sector.
●      The National Bank has provided a refinancing for 13 banks in the amiunt of 2.5 billion UAH and sold certificates of deposit for up to two weeks for 5 billion UAH for some local banks.
The official hryvnia exchange rate continues to decline: 15.65 UAH / $ (+0.07 UAH), 19.35 UAH/ € (+0,26 UAH) 2.89 UAH / 10 € (-0.03 UAH). By the end of the trading session on the interbank market, the currency rate exceeded the level of 16 UAH / $. Currency cash purchase rate is higher than 16 UAH / $.
Money banknotes supply in November increased by 1.3% and reached 972 billion UAH.

Kyiv

●      Kiev hospitals financing order will be changed in 2015. They will get the status of municipal non-profit enterprises, which will allow for collecting “donations” to special accounts. Part of the funds received will be transferred to the local budget but about 80% will remain at the disposal of hospitals.
●      City Hall is planning to conduct laser scanning of the city infrastructure with the help of special equipment. This will create a three-dimensional model of the city’s urban grid for developing different models of city management systems.

War in Ukraine

●      The “Regime of Silence” was annonced in the Donbass. Nevertheless, terrorists continue to fire on the Ukrainian army positions. Ukrainian troops did not open fire in response.
The numbers of internally displaced people, who escape terrorist-controlled zones, is substantialliy grown during last few days.

Ukraine and the World

●      The UN report “World Economic Situation and Prospects 2015” predicts gradual global economic growth despite the geopolitical conflicts, including one in Ukraine, and the threat of a global epidemic of Ebola. Russia’s economy in 2015 is expected to stagnate.
●      According to US Vice President Mr. Biden, Ukraine has no right to miss another chance to carry out reforms.

Trends

●      President Poroshenko has been well received during his trips abroad, but international community do not provide much support because of the lack of real reform and a huge level of corruption in the country. So, the effectiveness of these trips is extremely low.
●      Russian Mass media uses the activity of Radical Party leader Lyashko as an instrument in anti-Ukrainian propaganda.

 

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