June 06-12, 2016


Situation in Eastern Ukraine

On June 6, Ukrainian troops repelled an attempt by terrorists to assault the strong hold in Mayorsk, reported the AP spokesman for the ATO Andriy Lysenko. According to him, the enemy made powerful shelling in Donetsk direction, using 120-millimeter howitzers.

On June 6, a Ukrainian military was killed in the ATO, another seven were injured, reported AP spokesman for the ATO Andriy Lysenko.

113 Ukrainian hostages remain in terrorist captivity in Donbas, 642 persons are considered missing, reported Yuriy Tandit, Advisor to the SBU Head.

The SMM OSCE confirmed the disappearance of its employee in Luhansk region. The Mission reported they have no additional information on the whereabouts of the missing man at the moment.

On June 4-6, two terrorists were killed; eleven were injured, reported AP spokesman for the ATO Andriy Lysenko.

Terrorists shelled ATO forces positions with the BMP-1 near the village Stanytsia Luhanska, wrote coordinator of the “Information Resistance” on his Facebook page. Terrorists also actively used anti-tank missiles to destroy light armoured vehicles of ATO forces, which are located directly on the front line, reported Dmytro Tymchuk.

Situation in the ATO area remains tense. On June 8, terrorists shelled 15 times ATO forces positions. The hottest spot was in Mariupol direction.

Politics and Economy

Due to introduction of energy efficiency programs Ukraine would be able in five years to reduce gas import to 1-1.5 billion cubic meters annually, stated the President of Ukraine Petro Poroshenko during a meeting of the National Council reform.

Foreign Minister of Ukraine Pavlo Klimkin sees no possibility of the participation of the Russian side in the police OSCE mission in Donbas.

Budget Resolution for 2017 foresees growth of GDP by 3%, said Finance Minister Oleksander Danyluk.

For five months the general funds of local budgets in Ukraine have received almost UAH 54 billion, which is by UAH 17 billion higher than in the same period last year, said Prime Minister of Ukraine Volodymyr Groisman.

In 2016, the Ukrainian side expects the gas price in the range of USD160-180 per thousand cubic meters, announced the Secretary of the National Council of Reforms, AP Deputy Head Dmytro Shymkiv.

In two years the budget deficit of Ukraine will be reduced from 12% to 3% of GDP, announced the Secretary of the National Council for Reforms, AP Deputy Head Dmytro Shymkiv.

The President of Ukraine Petro Poroshenko has signed the law “On Amendments to the Law of Ukraine” On the State Budget of Ukraine for 2016,” under which UAH5 billion is directed to subsidies for low-income citizens.

President Poroshenko has signed a law granting the foreigners the opportunity to serve under the contract in the Armed Forces of Ukraine.

International Situation

The President of Ukraine Petro Poroshenko had a telephone conversation with German Chancellor Angela Merkel and French President Francois Hollande. Participants noted that sanctions against Russia should remain until full implementation of the Minsk agreements.

Foreign Minister of Ukraine Pavlo Klimkin and Israeli Ambassador to Ukraine Eliab Byelotserkovski signed the intergovernmental agreement between Ukraine and Israel on temporary employment of Ukrainian workers in certain labour market sectors of the State of Israel.

The International Monetary Fund stated that the size of the next tranche will be determined at IMF meeting, which is tentatively scheduled for early July, said the representative of the Fund in Ukraine Jerome Voucher.

Ukraine ranked 156 out of 163 countries in the Global Peace Index ranking of peace-loving countries. This is according to a study published on the website of the Institute of Economics and Peace. The closest neighbours of Ukraine in the ranking were Sudan (155) and the Central African Republic (157).

French Senate adopted a resolution easing sanctions against Russia. Russia is an aggressor, which started war in Europe and annexed the territory of Ukraine. I understand that the final decision will make the government – so I hope that this decision will be reasonable and wise, stressed in his appeal to the French Senate Verkhovna Rada of Ukraine Speaker Andriy Parubiy.

44% of Ukrainians support NATO membership, 38% are against. These results of a nationwide poll published the Kyiv International Institute of Sociology.

International rating agency S & P Global Ratings (S & P) expects GDP growth in Ukraine in 2016 by 1%, due to improved confidence in the government, investment and political environment, reduced inflation and stabilization of the national currency. According to the agency, “accelerating of the economy should lead to GDP growth in 2016-2019 by an average of 2%.”

Deputy Managing Director of the IMF David Lipton praised the policy of exchange rate and monetary policy of Kyiv and said that Ukraine established the basis for recovery. He said this in an interview with “Novoye Vremia.”

The Council of the European Union and European Parliament will consider visa liberalization for Ukraine, Georgia and Kosovo no later than September, reported The Wall Street Journal with reference to European officials and diplomats. It is indicated that the hopes of Georgia, Ukraine and Kosovo that the EU approves visa-free travel to the EU by the end of summer disappeared against the background of problems, which recently were raised by most of the EU members.

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