IN THE SPOTLIGHT - Gorshenin Institute

INTHESPOTLIGHT
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CONTENT
1.Topnews…page5
2.ArmedconflictinUkraine`seast…page5
UkrainiangovernmentintroducesstateofemergencyinDonetsk,Luhansk
regions
ContactgrouponUkraineconflictholdsmeetinginMinsk
Ukraine'senvoytoUNsays12,000RussiansoldiersfightinDonbas
AnotherRussianhumanitarianconvoyarrivesinDonbas
Ukraineintalksoverdeliveriesoflethalweapons
Ukraineloses50percentofmilitaryaviation-watchdog
UNestimates5,190peoplekilledinUkrainesincebeginningofDonbasconflict
SeparatistsleaveoccupiedpartsofLuhanskRegionwithoutwater
3.Internationalpolitical…page8
InternationalreactiontodevelopmentsinUkraine
EUextendssanctionsagainstRussiauntilSeptember
ParliamentaryAssemblyoftheCouncilofEuropestripsRussiaofvotingright
untilApril
UNSecurityCouncilholdsurgentmeetingonUkraine
NATO'sannualreportharshlycriticizesRussia
Ukraine-Russia
UkrainecallsRussiaaggressor
UkrainianpresidentsendsresponsetoPutin'sletter
TwoRussianjournalistsdeportedfromUkraine
Russia-Ukrainetradeshrinksbyonethird
Crimeanissue
CrimeanMajlisdeputyheadarrestedbyRussianauthorities,faces10yearsin
prison
RussiapreparingdocumentonillegalityofCrimea'stransfertoUkraine
USAweakenssanctionsagainstCrimea
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Ukraine-EU
IrelandratifiesEU-Ukraineassociationagreement
EuropeanCommissioncancelsanti-dumpingdutiesonUkrainianweldedpipes
4.Domesticpolitical…page14
Parliamentpassesregulationsonterroristorganizationsatfirstreading
ForeigntravelregulationsforUkrainiansmaychangeduetomobilization
MPsrelaxvettinglawforseniorcommand
Presidentsetsupjointintelligencecommittee
ParliamentspeakerobligesMPstopostincomestatements
UkrainianpresidentsignslawallowingYanukovychtobeaccusedinabsentia
Yanukovych'sallyIvanyushchenkoputonwantedlist
FourBerkutofficersofficiallysuspectedofdispersingMaydan
Over942,000displacedpersonsregisteredinUkraine
5.Humanrights…page16
FreedomHouseranksUkraine"partlyfree"onFreedomintheWorld2015
rating
6.Media…page16
Prosecutor-General'sOfficeinvestigatingsignatureonsaledealforInterTV
7.Economy…page17
nd
Ukrainedropsto162 placeineconomicfreedomranking
IMFtoassistUkraineifsituationstabilizes
EUagreestolend1.8bneurostoUkraine
Ukraine,USsign2bn-dollarloanguaranteedeclaration
Ukraine'spublicdebtdeclinesby3bndollars
Ukraineowes4.7bndollarstoRussiaanditsbanks
Ukrainehiresrestructuringconsultants–mediareports
Ukrainefreezesgoldsales–IMF
Governmentgives1.97bndollarstoNaftohaz
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Officialhryvnyaratehitsnewrecordlow
Ukraineimposesmoratoriumondistributionofnetprofitbybanks
Ukrainianbanksshow3bn-dollarlossin2014–mediareports
NationalBankrevealsrefinancingdata
Primaryindustriesshrinkby10percentin2014
Pivdenmashhaltsoperationsuntil2March
Presidentsignslawloweringquorumforshareholdermeetings
Presidentappointsmembersofsecuritiescommission
8.Energy…page21
Governmentextendsemergencymeasuresinenergysector
Ukrainedemands12.2bndollarsfromGazprominStockholmcourt
Ukrainespends42percentofgasreserves
UkrainegrowsgasimportsfromSlovakiaandHungary
Enerhoatom,Holtecsignadditionalnuclearstorageagreement
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1.TOPNEWS
GovernmentintroducesstateofemergencyinDonbas
MeetingoftrilateralcontactgroupinMinskyieldsnoresult.
YoucanfindmoredetailsinthesectionARMEDCONFLICTINUKRAINE'SEAST
UkrainerecognizesRussiaasaggressorstate
ParliamentcallsonglobalcommunitytorecognizeRussiaasaggressorstate,
“DonetskandLuhanskpeople'srepublics”asterroristorganizations.
YoucanfindmoredetailsinthesectionINTERNATIONALPOLITICAL:UKRAINERUSSIA.
EuropeanCouncilextendssanctionsagainstRussiaduetodeteriorating
situationinDonbas
TheRussiahasalsobeenstrippedoftherighttovoteintheParliamentary
AssemblyoftheCouncilofEurope.
YoucanfindmoredetailsinthesectionINTERNATIONALPOLITICAL:
INTERNATIONALREACTIONTODEVELOPMENTSINUKRAINE.
2.ARMEDCONFLICTINUKRAINE'SEAST
UkrainiangovernmentintroducesstateofemergencyinDonetsk,Luhansk
regions
On26January,theCabinetofMinistersofUkrainedecidedtointroduceastate
ofemergencyinDonetskandLuhanskregions.Thegovernmentalsosaidthatit
wasonhighalertandreadytorespondtoemergenciesacrosstheentire
country.
WewouldliketopointoutthatthesituationinDonbasremainsdifficult.The
mostintensefightingisobservedinthecitiesofDebaltseve,Vuhlehirskand
Mariupol(DonetskRegion).
AccordingtoUkrainianPrimeMinisterArseniyYatsenyuk,about1,000people
havebeenevacuatedfromDebaltseve.Theprimeministeraddedthatbuses
withthedisplacedresidentsareconstantlyattackedbythepro-Russian
militants.ThepressserviceoftheDonetskregionalstateadministration
reportedthaton1Februarythemilitantsfiredontwobusescarryingevacuated
residentsfromDebaltseve,injuring8people.
Additionally,wewouldliketostressthatpro-Russianseparatistsshelled
Luhanskon27January.ThespecialmonitoringmissiontoUkraineofthe
OrganizationforSecurityandCooperationinEurope(OSCE)reportedthat
clustermunitionshadbeenfiredonthecity.Separatistsourcesreportedthat26
peoplehadbeeninjured.
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On30January,morethan15civiliansdiedandmorethan30wereinjuredasa
resultofshellinginDonetsk.Thesameday,eightcivilianswerekilledand19
wereinjuredbyshellinginHorlivka,which,likeDonetskandLuhansk,remains
underthecontrolofpro-Russianseparatists.
TheUkrainiansidepinnedresponsibilityfortheshellingonpro-Russian
separatistsandtheRussianmilitary,whileRussiaandtherebelsaccused
Ukraine.
Foritspart,theOSCEaccusedpro-Russianseparatistsofblockingtheworkof
itsspecialmonitoringmissioninUkrainianareasborderingRussia,theGerman
broadcasterDeutscheWellehasreported.
ContactgrouponUkraineconflictholdsmeetinginMinsk
ThecityofMinsk(Belarus)on31Januaryhostedtrilateralconsultationsofthe
contactgroup(Ukraine,Russia,OSCE)thatdealswiththesettlementofthe
conflictinDonbas.
Leadersoftheself-proclaimedDonetskandLuhanskpeople'srepublics(DPR
andLPRrespectively)OleksandrZakharchenkoandIhorPlotnytskyy,who
arethesignatoriestotheMinskProtocolandMemorandum,refusedto
participateinthenegotiationsandsenttothemeetingtheir“representatives”
DenysPushylinandVladyslavDeyneho.Atthesametime,themeetingwas
attendedbytheleaderoftheUkrainianChoiceorganization,Viktor
Medvedchuk,whoisconsideredtobeacloseallyofRussianPresident
VladimirPutin.
Itshouldbenotedthatpriortotheconsultations,thetrilateralcontactgroup
preparedadocumentonacease-fireandthewithdrawalofheavyweaponsin
Donbas,whichithopedtoapproveandsigninMinsk.However,asnotedbythe
OSCE,representativesofthemilitantswerenotreadytodiscusstheproposals
fromthecontactgroup.Instead,theycalledfortherevisionoftheProtocoland
theMemorandum,theorganizationadded.
Ukraine'srepresentativeinthenegotiations,ex-PresidentLeonidKuchma,said
thatduringthemeetingtheseparatistsdemandedthatUkrainePresidentPetro
Poroshenkoissueadecreeonunilateralcease-fire,andthreatenedtoresume
full-scalehostilitiesalongthefrontlinesiftheirultimatumisnotmet.In
addition,KuchmasaidthatPushylinandDeynehoinsistedthatthelineof
contactshouldbedeterminedaccordingtothesituationasof31January2015,
nottheoneapprovedintheMinskagreementsof19September2014.
Atthesametime,Russiaprovidednoofficialreactiontothestatementsmadeby
therepresentativesofthemilitants.
ValeriyChalyy,deputyheadoftheUkrainianpresidentialadministration,said
thatthepeaceprocesswasinjeopardybecauseoftheultimatumsputforthby
theDPRandLPRrepresentatives.
Earlier,theheadoftheKremlinadministration,SergeyIvanov,saidthatthe
UkrainianconflictwouldcontinueuntilKievstartsdirectnegotiationswiththe
self-proclaimedDonetskandLuhanskpeople'srepublics.
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Ukraine'senvoytoUNsays12,000RussiansoldiersfightinDonbas
Asof26January,12,000Russiansoldiershavebeenstationedintheeastof
Ukraine,theUkrainianpermanentenvoytotheUN,YuriySerheyev,hassaid.He
addedthatRussiahadsent235tanks,720armouredpersonnelcarriersand263
artillerysystemstoassistpro-RussianrebelsinDonbas.
ThepresscentreoftheUkrainianantiterroristoperationreportedthatduringa
questioningofadetainedRussiantrooperittranspiredthatinadditionto
militarypersonnel,RussiahadsentconvictstoUkraine.
TheSecurityServiceofUkraine(SBU)reportedthaton20-23January,following
anorderfromtheGeneralStaffoftheRussianArmedForces,sevenmobile
crematoriumshadbeendispatchedtotheUkrainianterritorywhichwas
temporarilyoccupiedbypro-Russianseparatistsinordertoburnthebodiesof
killedRussianservicemen.
Wewouldliketopointoutthatduringameetingon29January,theEUmilitary
committeepresentedevidenceofRussia'sinvolvementintheconflictinDonbas
totheEUforeignministers,thePolishnewspaperGazetaWyborczahasquoted
thePolishnewsagencyPAPassaying.Inparticular,membersofthecommittee
demonstratedevidenceofalargeRussianmilitaryunitpositionedclosetothe
borderwithUkraine.
Wewouldliketopointoutthaton27January,theBBCRussianairedavideo
showingasecrettrainingcampinSt.Petersburgwheretroopswereundergoing
basicmilitarytrainingbeforebeingsenttofightintheeastofUkraine.
RussianPresidentVladimirPutinsaidthattheUkrainianarmywasaNATO
legion,whichdidnotdefendUkraine'snationalinterestsbutwasbenton
protectinggeopoliticalinterestsofcontainingRussia.Inhisturn,NATOSecretaryGeneralJensStoltenbergpointedoutthattheonlyforeignlegionfightingin
UkrainewastheRussianArmedForces.
AnotherRussianhumanitarianconvoyarrivesinDonbas
On31January,the12thRussianconvoyof90vehiclesallegedlycarrying
humanitarianassistancearrivedintheoccupiedterritoryofDonetskand
Luhanskregions.
Aspreviously,theRussianauthoritiesdidnotsecureUkraine'spermissionto
deliverthecargo.
TheUkrainianmilitaryhassaidonmultipleoccasionsthatrightafterthearrival
inDonbasofRussianconvoyswiththeso-calledhumanitarianassistance,which
isdistributedtopro-Russianseparatistsbutnottocivilians,theshellingof
Ukrainianpositionsdramaticallyintensifies.
Ukraineintalksoverdeliveriesoflethalweapons
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TheUkrainianDefenceMinistryandforeigncountrieshavebeenconducting
negotiationsondeliveriesoflethalweapons,arepresentativeoftheGeneralStaff
oftheUkrainianArmedForces,AndriyOrdynovych,hassaid.
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HeaddedthatthemilitaryleadersoftheNATOmemberstatesandotherstatesdid
notrecognizetheneedtosupplyUkrainewithlethalweaponsatthemomentsince
theybelievethattheUkrainianarmyissufficientlyequippedtofightwithproRussianseparatistsinDonbas.
Aspreviouslyreported,PolandandFrancearereadytodelivermodernweaponsto
Ukraine.
USAssistantSecretaryofStateforEuropeanandEurasianAffairsVictoriaNuland
saidthatifRussiadoesnotstoptosponsorviolenceandrefusestogiveUkraineback
thecontrolovertheentirestateborder,theadministrationofPresidentBarack
ObamawillreconsideritsstanceonsupplyingUkrainewithlethalweapons.
Ukraineloses50percentofmilitaryaviation-watchdog
Ukrainelostpracticallyahalfofitsmilitaryaviationlastyear,areportofFlightglobal
Insight'sWorldAirForceshassaid.Atthebeginningof2014,Ukraine'sfleet
included400aircraft,butithasshrunkto222.
UNestimates5,190peoplekilledinUkrainesincebeginningofDonbasconflict
TheUNhasestimatedthatasof26January2015,5,190peoplediedand11,520
wereinjuredinUkrainesinceAprillastyearwhentheconflictintheeasternpartof
thecountrystarted.
TheUkrainianpresidentialombudsmanforchildrenrights,MykolaKuleba,said
thatasof26January,60childrenhavediedasaresultoffightinginDonbas.
WewouldliketopointoutthatthewebsiteSlovoiDiloreportedthatasof28
January,1,420Ukrainianservicemenhadbeenkilledduringtheantiterrorist
operation.
Italsobecameknownthatcommanderofthe“Donbas”battalion,UkrainianMP
SemenSemenchenkosufferedshellshockduringamilitaryoperationinVuhlehirsk
on31January.On1February,healsogotinaroadtrafficaccident.Now,his
conditionisstable.
SeparatistsleaveoccupiedpartsofLuhanskRegionwithoutwater
Thepro-Russianseparatistsdamagedawater-supplylineduringshelling,thus
leavingalmosttheentireoccupiedterritoryofLuhanskRegionwithoutwater,
governorofLuhanskRegionHennadiyMoskalsaidon31January,accordingtothe
newsandanalysiswebsiteLB.ua.
3.INTERNATIONALPOLITICAL
INTERNATIONALREACTIONTODEVELOPMENTSINUKRAINE
EUextendssanctionsagainstRussiauntilSeptember
On29January,theEuropeanCouncilvotedinfavourofextendingvisaandfinancial
sanctionsagainstRussianofficialsandpro-RussianseparatistsuntilSeptember
2015.TheEUforeignministersexplainedtheirdecisionbythedeteriorationofthe
situationinUkraine.
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TheEuropeanCouncilalsourgedtheEuropeanCommissiontodraftproposals
withinaweekregardingtheintroductionoffurthersanctions,whichwillbe
discussedduringameetingon9February.
On27January,theheadsofstateandleadersoftheEUmemberstatesurgedina
jointstatementtheforeignministerstodiscusstheissueofpotentially
increasingthepressureofsanctionsonRussia.
Atthesametime,EuropeanParliamentPresidentMartinSchulzexpressed
oppositiontonewsanctionsagainstMoscow.
TheRussiandailyKommersantquoteditsownsourcesassayingthattheEU
mightincludemoreRussianindividualsandcompaniesintoits"blacklists",as
wellasbandeliveriesofcertainkindsofequipment,includingequipment
intendedforthegassector,toRussia.
ItisworthnotingthattheUSalsoconfirmedthewillingnesstotightensanctions
againstRussia.
RussianPrimeMinisterDmitriyMedvedevwarnedtheEUagainstnew
sanctions,sayingthattheKremlinwouldrespondtothemharshly:"Inthecase
ofmakingthesedecisions,I'dliketopointoutthatoureconomicreaction,and
ingeneralanyother,willbewithoutrestraint."
ParliamentaryAssemblyoftheCouncilofEuropestripsRussiaofvoting
rightuntilApril
On28April,lawmakersoftheParliamentaryAssemblyoftheCouncilofEurope
(PACE)approvedaresolutionunderwhichsanctionsagainsttheRussian
delegationwouldremaininplaceuntilAprilduetoaggressionagainstUkraine.
Hence,theRussiandelegationwillnothavetherighttovoteintheCouncilof
Europeuntilthenextsession.Additionally,Russianlawmakerswillbeunableto
participateinelectionobservationmissions,serveasrapporteursorbe
appointedasPACErepresentativesinotherbodies.
TheresolutionalsolaysoutademandthatRussiafreewithin24hoursa
memberoftheUkrainiandelegationtothePACE,militarypilotNadiya
Savchenko,keptinRussiancustodysinceAugust2014.
On27January,thePACEpassedaresolutiononthesituationinUkraineinwhich
italsocalledonRussiatoimmediatelyreleaseSavchenkoandallprisonersof
warwhoareillegallyheldinRussianjails.
Additionally,thedocumentdemandsthatRussiaagreeallinitiativeson
humanitarianassistancewiththeUkrainiangovernmentandrefrainfrom
deliveringmilitaryassistancetopro-RussianseparatistsinDonbas.The
assemblyalsourgedtheRussianleadershiptoensurethathumanrightsare
respectedinCrimea.
Inhisturn,theleaderoftheRussiandelegationtothePACE,AlekseyPushkov,
saidthatRussiawouldsuspenditsparticipationinthePACEuntiltheendofthe
year.
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TheRussianForeignMinistrylaterstatedthatRussiaintendedtocontinueits
workinthecommitteeofministersandotherbodiesoftheCouncilofEurope.
WewouldliketopointoutthattheRussiansiderefusedtocomplywiththe
PACErequesttoimmediatelyreleaseSavchenko.Furthermore,ittranspiredthat
on15January,theRussianFederalSecurityServicehadlaunchedanewcriminal
caseagainsttheUkrainianpilotoverherallegedlyillegalcrossingoftheRussian
border.AtthesametimeSavchenkoinsiststhatshewaskidnappedandin
Donbasbypro-RussianterroristsandthenillegallytransportedittoRussia.
UNSecurityCouncilholdsurgentmeetingonUkraine
On26January,theUNSecurityCouncilheldanurgentmeetingtodiscussthe
situationinUkraine.ThemeetingwasorganizedontheinitiativeofLithuania
duetoaterroristactinMariupolandduetothedeteriorationofthesituationin
Donbas.
Themajorityofthecountriesexpressedindignationoverthemostrecent
actionsofpro-Russianseparatists,urgingRussiatocomplywithtermsofthe
Minskagreements.
Aspreviouslyreported,theUNSecurityCouncil'sattemptstoadoptresolutions
onUkrainehavebeenregularlyblockedbyRussia,whichholdsthevetoright.In
itsturn,theVerkhovnaRadaofUkraineurgedtheinternationalcommunityto
stripRussiaofmembershipinthisbody.
NATO'sannualreportharshlycriticizesRussia
On30January,NATOSecretary-GeneralJensStoltenbergpresentedthe2014
annualreportofthealliance,whichharshlycriticizedRussia.
Thedocumentsaidthatin2014,Russiaandseparatistswhomitbacked
launchedacampaignofviolenceintendedtodestabilizeUkraineasasovereign
state.Therefore,NATObelievesthattheactionsofMoscowfundamentally
alteredtheimageofEuropeasafreecontinentandthusposedathreatto
securityandstabilityintheworld.Asaresultofthesedevelopments,theforeign
ministersoftheNATOmemberstatesdecidedtosuspendpracticalcivilianand
militarycooperationwithRussiaandretainonlypoliticalcontacts,thereport
read.
WewouldliketopointoutthatNATO'sSupremeAlliedCommanderEurope,Gen
PhilipBreedlove,inaninterviewwiththeGermandailyDieZeiton28January
ruledoutthepossibilityofconstructiverelationswithMoscowduetothe
conflictintheeastofUkraine.
UKRAINE-RUSSIA
UkrainecallsRussiaaggressor
On27January,theVerkhovnaRadaofUkraineadoptedaresolutionon
recognizingRussiaasacountry-aggressor.
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Ukrainianlawmakersalsourgedtheinternationalcommunitytorecognize
Russiaasanaggressor,increasepressureonMoscowanddeclaretheselfproclaimedDonetskandLuhanskpeople'srepublicsterroristorganizations.
Additionally,thedocumentstressedtheneedtoputmorepressureonRussia,
includingbymeansofnewsanctions,inordertoforcetheRussianleadershipto
complyfullywithalltheprovisionsoftheMinskagreements,stoptheillegal
occupationofCrimeaandtofreeallhostagesandUkrainiancivilianswhoare
illegallydetainedonRussianterritory.
Followingtheparliamentvote,Russiawasrecognizedanaggressorstateand
theself-proclaimedDonetskandLuhanskpeople'srepublicsasterrorist
organizationsbythecitycouncilsofKiev,Dnipropetrovsk,Mariupol,
KramatorskandSlavyansk(DonetskRegion).
UkrainianpresidentsendsresponsetoPutin'sletter
On25January,UkrainianPresidentPetroPoroshenkorespondedtoaletter
sentbyhisRussiancounterpartVladimirPutin,inwhichheinformedthe
latteraboutthecommitmentoftheUkrainiansidetotheunconditional
implementationoftheMinskagreements,theUkrainianweeklyZerkaloNedeli
hasreported.
TheUkrainianheadofstatestressedthatduringameetingoftheforeign
ministersintheso-calledNormandyformatinBerlinon21January,Russian
ForeignMinisterSergeyLavrovalso"expressedcommitmentoftheRussian
sidetotheMinskagreements,notingthatthewithdrawalofweaponswitha
calibrethatexceeds100mmwouldtakeplacefromthelineofcontactas
definedintheMinskagreementsof19September2014".
Additionally,PoroshenkourgedtheRussianpresidenttofreeamemberofthe
UkrainiandelegationtotheParliamentaryAssemblyoftheCouncilofEurope,
militarypilotNadiyaSavchenko,whoiscurrentlyinRussiancustody.
Wewouldliketopointoutthaton28January,GermanChancellorAngela
MerkelandFrenchPresidentFrancoisHollandesaidinaphoneconversation
withPoroshenkothattheysupportedhisapproachtothede-escalationofthe
conflictinDonbas,whichshouldinvolvethewithdrawaloftroopsfromtheline
ofcontactagreedbytheMinskdealof19September.
WeshallremindyouthatinhislettertoPresidentPoroshenkoof15January,
Putinlaidoutaproposaltostartthewithdrawalofweaponswithacalibre
exceeding100mmfromthelineofcontact.However,duringtheperiodofa
cease-fireannouncedinSeptember,pro-Russianseparatistsoccupiedmorethan
550sq.km.ofUkrainianterritory.
TwoRussianjournalistsdeportedfromUkraine
On30January,theSecurityServiceofUkrainedetainedacorrespondentand
cameramanoftheRussianTVchannelLifeNewsduetotheactivity"which
harmsUkraine'snationalinterestsandisunrelatedtojournalism",Markiyan
Lubkivskyy,anadvisertotheSBUchief,hassaid.
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Thesameday,welearnedthatthedetainedemployeesoftheLifeNewsTV
channelweredeportedfromUkraine.
Russia-Ukrainetradeshrinksbyonethird
TheRussianEconomicDevelopmentMinistryhassaidthatin2014,RussiaUkrainetradeshrankby28.8percent,comparedwith2013,to28.19bndollars.
In2014,Ukraine'sbiggesttradepartnerswereEUcountriesaccountingfor35.5
percentofimportsandexports.TheyarefollowedbyCIScountries,29percent,
andAsiancountries,24percent.
On30January,expertswhotookpartinthe"Ukraine2015.Economicforecast"
roundtableorganizedbytheGorsheninInstitutesaidthatUkraineshouldbe
lookingforwaystoenterthirdmarketstoreviveitseconomy.Gorshenin
Institutevice-presidentOleksiyLeshchenkorecalledthattheUkraine-Russia
tradealwayshadnegativebalance."Weonlyhadpositivebalanceintradewith
LatinAmericaandAsia.Thesecountriesmayhelpoureconomytofurther
stabilize,"headded.
Overall,theroundtableparticipantsagreedthatUkrainecouldboosttradewith
agriculturalandmilitary-industrialproducts.Theexpertssaidthatany
economicprospectscouldonlybemadeiftheDonbasconflictde-escalates.
CRIMEANISSUE
CrimeanMajlisdeputyheadarrestedbyRussianauthorities,faces10
yearsinprison
On29January2015,theRussianInvestigationCommitteeinCrimeaarrested
thedeputyheadoftheCrimeanTatarMajlis,AkhtemChyyhoz,withinthe
frameworkofthecriminalcaseontheorganizationofmassriots.(Thecase
referstothe26February2014rallybyCrimeanTatarsoutsidetheCrimean
parliamentbuilding,whichwasbeforeCrimeawasannexedbyRussia–editorial
note).
Thesameday,theSimferopolcourtruledthatChyyhozshouldbeputincustody
until19February2015.So-calledCrimeanprosecutorNatalyaPoklonskaya
saidthathewasalsosuspectedofinvolvementinthedeathoftwopeoplekilled
asaresultoftheprotesters'actions.SheaddedthatChyyhozwasfacing10
yearsinprison.
TheKrym.RealiiwebsitesaidthatChyyhoz'shouseinBakhchysaraywas
searchedbytheoccupyingauthoritieson30January.Ninehourslater,theyleft
thehousetakenapart,thewebsitesaid.
Krym.RealiisaidthatitpossessedvideofootageshowingthatChyyhozurged
rallyparticipantstokeepcalm.
On26January,RussianlawenforcersenteredtheofficeoftheCrimeanTatarTV
channelATRinSimferopol.Thechannel'sdeputydirector,LiliyaBudzhurova,
saidthepurposeoftheir"visit"wastoconfiscateallfilesontherallyoutside
theCrimeanparliamentoffice.
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CommentingonChyyhoz'sarrestandthesearchatATR,AmnestyInternational
saidtheoccupyingauthoritiesofCrimeapersecutethedissenters.
On26February,CrimeanTatarspreventedtheCrimeanparliamentfromholding
asession.Earlyon27February,theparliamentbuildingwasseizedbythe
RussianspecialforceswhocorralledMPsintothehall,thusmarkingthestartof
Crimea'sannexationbyRussia.
RussiapreparingdocumentonillegalityofCrimea'stransfertoUkraine
TheworktodraftthebillrecognizingCrimea'stransfertoUkrainein1954as
illegalhasbeencompleted,thechairmanoftheRussianFederationCouncil,
VladimirDzhabarov,hassaid.
ThedocumentcanbesenttotheStateDumainFebruary,hesaid.
ThenewsandanalysiswebsiteLB.uasaidthatRussiawasgoingto"legalize"the
March2014annexationoftheUkrainianpeninsula.
USAweakenssanctionsagainstCrimea
AllUSsanctionstookeffectontheterritoryofRussia-annexedCrimeaasof1
February2015.
TheVisaandMasterCardpaymentprocessingnetworks,commercialservicesby
Google,onlinestores,auctionsandotherscutoffCrimeaalittleearlier.
On30January,theUSTreasuryannouncedexceptionsfromthesanctions
imposedonCrimea.Inparticular,itallowedcertainnon-commercialtransfersto
Crimeans,exceptforthosesubjecttopersonalsanctions.
AnotherexceptionallowsCrimeanresidents,whoarenotsubjecttopersonal
sanctions,touseUS-basedbankaccountsforprivate,notcommercial,transfers.
UKRAINE-EU
IrelandratifiesEU-Ukraineassociationagreement
IrelandratifiedtheEU-Ukraineassociationagreementon28January2015.
Theagreementhasalreadybeenratifiedby14outof28countries.
EuropeanCommissioncancelsanti-dumpingdutiesonUkrainianwelded
pipes
On27January2015,theEuropeanCommissioncancelledanti-dumpingdutieson
Ukrainianweldedpipes,theYevropeyskaPravdawebsitehasquotedapartnerat
theBelgianlawfirmVanBael&Bellis,YuriyRudyuk,whorepresentsUkrainian
pipemakers,assaying.
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TheEuropeanCommissionleftunchangedthedutiesonpipesfromRussia,
BelarusandChina,havingprolongedthemforanotherfiveyears.
4.DOMESTICPOLITICAL
Parliamentpassesregulationsonterroristorganizationsatfirstreading
On27January2015,theUkrainianparliamentpassedatfirstreadingthe
governmentbillontheprocedureofrecognizingorganizationsasterroristones.
ThedocumentintroducesamendmentstotheCodeofAdministrativeCourt
ProcedureofUkrainebyauthorizingtheSupremeAdministrativeCourtof
Ukrainetohearcasesonrecognizingorganizationsasterroristones.
Ifanorganization'sterroristactivitiesresultedinacrisisorposedathreatto
nationalsecurity,thisorganizationmayberecognizedasaterroristonebythe
decisionoftheNationalSecurityandDefenceCouncilofUkraine.
Thedocumentcanbeadoptedasawholenextweek.
ForeigntravelregulationsforUkrainiansmaychangeduetomobilization
On30January2015,UkrainianPresidentPetroPoroshenkosignedadecreeon
additionalmeasurestoensurepartialmobilizationin2015,yettobeconsidered
bytheCabinetofMinisters.
Thedecreeinstructsthecabinettoworkoutlegalregulationsonforeigntravel
byUkrainiancitizenssubjecttomilitaryserviceduringmobilization.
On31January,Ukraine'sDefenceMinisterStepanPoltoraksaidthattotravel
abroadUkrainiansofthemilitaryagewillberequiredtoshowarespective
permitfromtheirlocalarmyrecruitingoffices.
TheDefenceMinistryisformingaregisterofpersonsliableformilitaryservice
whichwillincludeinformationaboutthosewhoevademobilization.
On28January,theRussianFederalMigrationServiceallowedUkrainiancitizens
liableformilitaryservicetostayinRussiafor90,insteadof30,days.Twodays
earlier,whenannouncingthismeasure,RussianPresidentVladimirPutinsaid
itwouldhelpdraftdodgers.
Mpsrelaxvettinglawforseniorcommand
On27January2015,theUkrainianparliamentamendedthelawonthe
cleansingofauthorities,knownasthevettinglaw,toallowuniformedagency
headstoappealtotheUkrainianpresidenttoexemptspecificseniorofficers
fromvetting.
PresidentPetroPoroshenkosignedthedocumenton30January.
PoroshenkoauthorizedthereinstatementoftheformerGroundTroops
commander,Col-GenHennadiyVorobyov,asfirstdeputychiefoftheGeneral
Staff.Earlierhewasdismissedaftervetting.WhenViktorYanukovychwasthe
president,VorobyovrefusedtouseforceagainstMaydanactivists.
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Presidentsetsupjointintelligencecommittee
On30January2015,PresidentPetroPoroshenkosignedadecreetosetupa
jointintelligencecommitteeunderhisauspices.
Thisdecreealsoliquidatedtheintelligencecommitteeunderthepresidentof
UkraineanddismissedhisheadIhorSmeshko.
ParliamentspeakerobligesMPstopostincomestatements
On29January2015,parliamentspeakerVolodymyrHroysmansignedan
instructionobligingUkrainianMPstopublishtheirincomestatementsandthe
listoftheirassistants.
UkrainianpresidentsignslawallowingYanukovychtobeaccusedin
absentia
On30January2015,PresidentPetroPoroshenkosignedthelawallowing
suspectsorthoseputoninternationalorinterstatewantedlisttobeaccusedin
absentia.
Amongsuchsuspectsareex-PresidentViktorYanukovychandex-Prime
MinisterMykolaAzarov.
TheUkrainianparliamentpassedabilltothiseffecton15January.
Yanukovych'sallyIvanyushchenkoputonwantedlist
TheInteriorMinistryhasputformerPartyofRegionsMPYuriy
Ivanyushchenko,amemberofex-PresidentViktorYanukovych'sclose
entourage,onwantedlist.
Heissuspectedofgrossembezzlement.
InteriorMinisterArsenAvakovearliersaidthatIvanyushchenkoorganizedand
financedarmedthugs,knownastitushkos,whoabducted,beatandkilled
Maydanactivists.
FourBerkutofficersofficiallysuspectedofdispersingMaydan
FourunitcommandersoftheBerkutriotpolicehavebeenservedanoticeof
suspicionoverthedispersalofthe30November2013rallyonKiev's
IndependenceSquareknownasMaydan,UkrainianProsecutor-GeneralVitaliy
Yaremahassaid.
Hespecifiedthatasaresultofcriminalactionsbypolice,over80peoplewere
hurt,ofthem38wereinjured.
Healsosaidthatthesuspectsstillholdseniorpostsinpolice.
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AccordingtotheInteriorMinistry,over600lawenforcerswerehurtfrom18to
20February2014,whentheprotestsonMaydanevolvedintoviolentclashes.
Fifty-fivecriminalcaseswereopenedoverpre-meditatedandattempted
murdersofpoliceofficersandcausingbodilyharmtothem.
Over942,000displacedpersonsregisteredinUkraine
TheSocialPolicyMinistryhassaidthatover942,750displacedpersonsfrom
CrimeaandDonbashavebeenregisteredinUkraineby26November2015.
AccordingtotheUkrainianRedCrossSociety,themajorityofdisplacedpersons
isconcentratedinKharkiv,Dnipropetrovsk,Odessa,Zaporizhzhya,Poltavaand
Kievregions.
5.HUMANRIGHTS
FreedomHouseranksUkraine"partlyfree"onFreedomintheWorld2015
rating
FreedomHousehasrankedUkraine"partlyfree"ontheFreedomintheWorld
2015rating.
EventsinEurasiain2014weredominatedbytheupheavalinUkraine.Gains
relatedtotheousterofPresidentViktorYanukovychthroughtheEuroMaydanprotestsinFebruary,whichledtotheelectionofanewpresidentand
parliamentlaterintheyear,wereoffsetbyRussia'sseizureofCrimeainMarch
andongoingbattleswithpro-RussianseparatistsineasternUkraine,thereport
says.
6.MEDIA
Prosecutor-General'sOfficeinvestigatingsignatureonsaledealforInter
TV
ActingonamotionfromPetroPoroshenkoBlocMPSerhiyLeshchenko,the
Prosecutor-General'sOfficeon22January2015openedacriminalcaseoverthe
forgedsignatureofformerInterTVownerIhorPluzhnykovduringthesaleof
thechannelin2005.
Asreportedearlier,criminalistshaveconfirmedthatPluzhnykov'ssignature
wasforged.
AccordingtoLeshchenko,Pluzhnykovsignedanagreementtosellthechannel
toRussianbusinessmanKonstantinGrigorishin,however,aftertheformer
suddenlydied,thechannelendedupwithValeriyKhoroshkovskyy.
Currently,thechannelispartofU.A.InterMediaGroupownedbybusinessman
DmytroFirtash.AformerpresidentialadministrationheadandanOpposition
BlocMP,SerhiyLyovochkin,alsoownssomeassetsinthegroup.
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7.ECONOMY
Ukrainedropsto162ndplaceineconomicfreedomranking
nd
Ukrainehasbeenranked162 outof178countriesinthe2015Indexof
EconomicFreedompublishedbyTheHeritageFoundation,stillremaining
amongcountrieswithrepressedeconomies.LastyearUkrainewasonthe155th
place.
TheresearchsaysthatespeciallygravedeteriorationsinUkraineareseenin
propertyrights,themanagementofgovernmentspending,andinvestment
freedom.
IMFtoassistUkraineifsituationstabilizes
TheInternationalMonetaryFund(IMF)willprovidefinancialassistanceto
Ukraineonlyafterthesituationinsidethecountryisstabilized,IMFManaging
DirectorChristineLagardesaidinaninterviewwithFrenchnewspaperLe
Monde.
Accordingtoher,whentheIMFgavefinancialsupportinthespringof2014,its
expertsexpectedtheconflictinthecountry'seasttoendbythewinter.
Asreportedearlier,UkraineandtheIMFhavereachedapreliminaryagreement
toextendthefinancingpackage.
Atthemoment,theIMFmissionisworkinginKiev.Accordingtothenews
agencyUkrainianNews,themission'sstayinUkrainehasbeenextendeduntil6
February.
EUagreestolend1.8bneurostoUkraine
EUfinanceministersagreedon27Januarytoallocate1.8bneurosinloansto
Ukraine,leavingopentheoptionofincreasingaidatalaterstage,theReuters
newsagencyhasreported.
Ukraine,USsign2bn-dollarloanguaranteedeclaration
UkraineandtheUnitedStateson28Januarysignedadeclarationonthe
provisionbytheUSgovernmentof2bndollarsinloanguaranteestoKiev.
AsnotedbyUSTreasurySecretaryJackLew,hiscountrycanincreasethesize
ofloanguaranteesforUkrainethisyearto3bndollarsifUkraineimplements
realreforms.
Atthesametime,USAmbassadortoUkraineGeoffreyPyattsaidinan
interviewwiththeZerkaloNedeliweeklythatifthereformprocessinUkraine
slowsdown,itwillbeveryhardfortheUkrainianauthoritiestocountonthe
supportfromboththeUSandtheEU.
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Ukraine'spublicdebtdeclinesby3bndollars
PublicdebtofUkrainedecreasedbymorethan3bndollarsto69bndollarsin
2014.However,inhryvnyaterms,duetotheseveredepreciationofthelocal
currency,theamountofdebtgrewfrom584.4bnhryvnyas)to1.1tnhryvnyas,
accordingtothefinanceministry.
Ukraineowes488.9bnhryvnyas(30.56bndollars)todomesticcreditorsand
611.7bnhryvnyas(38.23bndollars)toexternalcreditors.
ItshouldbenotedthatUkraine'sgovernmentdebttotheIMFatthebeginning
of2015was7.61bndollars.
Ukraineowes4.7bndollarstoRussiaanditsbanks
AccordingtotheFinanceMinistry,Ukraine'sdirectandpubliclyguaranteed
debttotheRussianFederationanditsbanksatthebeginningof2015totalled
4.73bndollars,or12.2percentofthecountry'sexternaldebt.
Ukraine'sdirectdebtmakes3bndollarsonEurobondsmaturinginDecember
2015plus605.9mdollarsowedunderthe1997agreementonsettingoffclaims
inconnectionwiththestationingofRussia'sBlackSeaFleetinUkraine.
Asfarasthecountry'spubliclyguaranteeddebttoRussianbanksisconcerned,
atthebeginningof2015itconsistedof500mdollarsowedtoGazprombank,
474.9mdollarstoSberbankofRussiaand146.9mdollarstoVTBCapital.
Ukrainehiresrestructuringconsultants–mediareports
UkrainehashiredconsultingfirmLazardforpossiblerestructuringofitspublic
debt,theReutersnewsagencyhasreported,citingsourcesfamiliarwiththe
situation.
Lastweek,FinanceMinisterNatalieJareskosaidthatKievhasplanstodiscuss
withcreditorsoptionsfortherepaymentofsovereigndebt.
Ukrainefreezesgoldsales–IMF
Ukrainehassuspendedsalesofgoldfromitsreserves,accordingtothedata
publishedbytheIMFon27January,theZerkaloNedeliweeklyhasreported.
Earlier,theweeklybusinessmagazineWirtschaftsWochepublisheddatafrom
theIMF,accordingtowhichUkraineinOctobersoldmorethanathirdofitsgold
andforeignexchangereserves.InlateOctoberUkrainehad26tonnesofgold,a
declineof14tonnesagainstSeptember.TheNationalBankexplainedthatthe
salesofgoldwerecarriedouttooptimizethestructureoftheinternational
reserves.
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Governmentgives1.97bndollarstoNaftohaz
TheCabinetofMinisterson23Januaryissuedanordertoincreasethe
authorizedcapitalstockofNaftohazUkrayiny,astate-runenergycompany,by
31.5bnhryvnyas(1.97bndollars)byissuingadditionalshares.
Officialhryvnyaratehitsnewrecordlow
TheNationalBankon30JanuarysettheofficialexchangerateoftheUkrainian
hryvnyaatUAH/USD16.16.Thisisthelowestvalueofthehryvnyaeversetby
theregulator.
TheeuroraterosetoUAH/EUR18.28.
Ontheblackmarket,USdollarsaresoldaboveUAH/USD20,whileeuroscanbe
purchasedaboveUAH/EUR23.
Ukraineimposesmoratoriumondistributionofnetprofitbybanks
On28January,Ukrainebroughtintoforcealawthatintroducedmoratoriumon
distributionofnetincomebybanks,exceptforsharecapitalincreasesand
formationofreservefunds,aswellasonpurchasebybanksoftheiroutstanding
shares.
Ukrainianbanksshow3bn-dollarlossin2014–mediareports
Asreportedbythemedia,Ukraine'sbankingsystemshowedacombinedlossof
53bnhryvnyas(3.31bndollars)in2014.
Itshouldbenotedthat,accordingtoofficialdata,state-ownedUkreximbank
ended2014withalossof9.8bnhryvnyas(612.5mdollars),andstate-owned
Oshchadbank(SavingsBank)withalossof8.5bnhryvnyas(531.25mdollars).
Atthesametime,Ukrsotsbanklost2.66bnhryvnyas(166.25mdollars),OTP
Bank–2bnhryvnyas(125mdollars),RaiffeisenBankAval–1.37bnhryvnyas
(85.63mdollars),NadraBank-1.04bnhryvnyas(65mdollars).
However,Privatbankmadeaprofitof749mhryvnyas(46.81mdollars),Russia's
VTBBank–643mhryvnyas(40.19mdollars),INGBank–228.9mhryvnyas
(14.31mdollars),DeltaBank–46.3mhryvnyas(2.89mdollars).
Itshouldbenotedthat2014wasarecordyearbythenumberoffailedbanks.A
totalof33bankinginstitutionswentbankruptoverthepastyear.
NationalBankrevealsrefinancingdata
TheNationalBankhasstartedpublishingdataonissuanceofloanstobanksfor
aperiodofmorethan30days.
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Overall,theregulatorin2014providedrefinancingloanstothetuneof
222.26bnhryvnyas(14.14bndollars),including115.6bnhryvnyas(7.23bn
dollars)formorethan30days.ThelargestUkrainianbanks-Oshchadbankand
Privatbank–receivedthemajorpartoftherefinancing–24.16bnhryvnyas
(1.51bndollars)and19bnhryvnyas(1.19bndollars),respectively.
Atthesametime,lastyearthecentralbankprovided13.18bnhryvnyas
(823.75bndollars)inloansformorethan30calendardaysto16banksthat
weresubsequentlyrecognizedasinsolvent.
Also,banksrepaidloanstotheNationalBankforatotalof189.43bnhryvnyas
(11.53bndollars).
Primaryindustriesshrinkby10percentin2014
OvertheyearproductioninbasicsectorsofUkraine'seconomy(manufacturing,
construction,agriculture,andwholesaleandretailtrade)declinedby9.6
percent,accordingtotheNationalBank.
Asestimatedbytheregulator,themaincausesbehindsuchadeclinewerethe
hostilitiesineasternUkraine,weakexternaldemandduetotheworsening
economicsituationofUkraine'smaintradingpartners,thedeteriorationof
traderelationswithRussia,thelossofpurchasingpowerofhouseholds,aswell
asthedeteriorationoffinancialperformanceofcompaniesagainstthebackdrop
oftighteningcreditactivity.
However,thereweretwopositivefactors–aheavyharvestandthe
liberalizationofaccessofUkrainiangoodstotheEUmarket.
Pivdenmashhaltsoperationsuntil2March
TheCEOofSouthernMachine-BuildingPlant(Pivdenmash)issuedanorder
suspendingoperationoftheenterpriseuntil2March2015,accordingtonews
andentertainmentwebsiteVGORODE.ua.Thedecisionwasmadebecauseofthe
company'sdifficultsituationcausedbythelackofgovernmentordersand
problematicsupplyofcomponentpartsfromthetemporarilyoccupiedregions
ofDonbas.
Thecompanyisexpectingabudgetadjustment,uponwhichtheenterprise
shouldgetadefencecontract,thewebsitereported.Italsoplanstotakealoan
tolaunchproductionoftractors,asthecompanyhasalreadyreceivedseveral
respectiveorders.
AswasalsoreportedthattheRussianspaceagencywillnolongerbuyZenith
rocketsproducedbyPivdenmash,andwillreplacethemwithown-produced
Angararockets.
PivdenmashisamajorUkrainiancompanyintherocket-and-spaceindustry.
Presidentsignslawloweringquorumforshareholdermeetings
PresidentPetroPoroshenkoon28Januarysignedthelawthatlowersquorum
requiredforholdinggeneralshareholdermeetingsofjoint-stockcompanies
from60percentto50percent+1share.
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Presidentappointsmembersofsecuritiescommission
PresidentPetroPoroshenkoon30JanuaryappointedmembersoftheNational
SecuritiesandStockMarketCommission.TheagencyisnowheadedbyTymur
Khromayev,ownerofinvestmentcompanyARTAandgas-producingcompany
GreatEastEnergy.
8.ENERGY
Governmentextendsemergencymeasuresinenergysector
TheCabinetofMinistershasprolongedforanothermonththeemergency
measuresintheelectricitymarketinordertoensurereliableanduninterrupted
operationsofUkraine'sintegratedpowergrid,accordingtothegovernment
resolutionof14January.
Duringtheemergencyperiod,allelectricitymarketentities,regardlessofthe
formofownership,areobligedtoactaccordingtotheoperationalsafety
standards,withdueaccountforcurrentinstructionscomingfromthestate-run
companyUkrenerho.
Ukrainedemands12.2bndollarsfromGazprominStockholmcourt
RussianGazpromhaspublishedafinancialreportforthefirstthreequartersof
2014,whichmentionsthatNaftohazUkrayiny,astate-runenergycompany,filed
12.2bn-dollarworthsuitswiththeStockholmarbitrationcourtagainstthe
Russiangascompany.
On16June,Naftohazfiledanactiononchangingthepriceofnaturalgasand
recoveringalloverpaymentsmadebythecompanysince20May2011,and
anothersuittoabolishthecontractprovisionthatprohibitsresaleofRussian
naturalgas.Theclaimedamountis6bndollars,thereportreads.
ThisclaimiscombinedwiththerequestforarbitrationfiledbyGazpromonthe
sameday.TheRussiancompanyaskedthecourttorecoverfromNaftohaz
unpaidnaturalgasdebtsandaccumulatedinterestforthetotalamountofmore
than4.5bndollars.
Naftohazsubmitteditssecondlawsuiton13October.Itincludesthefollowing
demands:torecognizethatNaftohaz'srightsandobligationsonthe2009-19gas
transitcontractshouldbetransferredtostate-runcompanyUkrtranshaz;to
changethegastransitcontractinaccordancewiththeenergyandantimonopoly
legislationofUkraineandtheEU;toobligeGazpromtopayNaftohaz3.2bn
dollarsforthevolumesofgasthattheRussiancompanyfailedtoprovidefor
transit;torecognizethatthetransittariffshouldberevised.Thepreliminary
costofthesecondclaimis6.2bndollars.
TheoralhearingsintheStockholmcourtwillbeheldnoearlierthanFebruaryMarch2016,Gazpromreported.
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Ukrainespends42percentofgasreserves
AccordingtoGasStorageEurope,theassociationofEuropeanoperatorsof
undergroundgasstoragefacilities,Ukrainefromthestartofthe2014-15heating
season(20October2014)to29January2015reduceditsreservesofnaturalgasin
undergroundstoragesbymorethan40percentto9.59bncu.m.
UkrainegrowsgasimportsfromSlovakiaandHungary
AccordingtoEustreamcompany,Ukrainehasincreasednaturalgasimportsfrom
SlovakiathroughtheVojany-Uzhhorodpipelinefrom39.02mcu.m.to41.41mcu.m.
perday.
Inaddition,accordingtoUkrtranshaz,Ukrainehasincreaseddailygasimportsfrom
Hungaryby38percentto3.7mcu.m.
Enerhoatom,Holtecsignadditionalnuclearstorageagreement
On26January,Ukrainianstate-ownedcompanyEnerhoatomandAmerican
corporationHoltecInternationalinBrusselsenteredintoasupplementalagreement
tothecontractontheconstructioninUkraineofacentralizedrepositoryforspent
nuclearfuelfromthethreeUkrainiannuclearpowerplants.
Underthecontract,theequipmentwillbesuppliedbytheendof2020.
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