June 27-July 03, 2016

Situation in Eastern Ukraine

During the week, the army intelligence has recorded 30 deaths and 37 wounded Russian soldiers, reported the representative of the Defence Intelligence Vadym Skybytskyi. According to him, about 60% of Russian troops’ loss falls on sabotage and reconnaissance groups. He added that such losses adversely influence the moral and psychological state of personnel, leading to deserting, including among career Russian officers.

The Russian military command continues to use Donbas for testing new weapons and ammunition, in particular guided weapons CM-8 called “Gran” designed to destroy the single and group objectives, including fortification with the first shot and no additional zeroing, reported the AP spokesman on ATO Andriy Lysenko.

On June 30 the enemy opened fire 66 times, including 28 in Donetsk, 21 in Mariupol and 17 in Luhansk areas.

In Mariupol direction terrorists using small arms and grenade launchers shelled strongholds near Shyrokyne, Starohnativka, Pavlopil and Talakivka, and near Novotroitske even 120-mm mortars.

In Luhansk direction the enemy shelled the strongholds of ATO forces near Novozvanivka with automatic grenade launchers and heavy mortars. Terrorists carried out shelling with 122-mm self-propelled guns aiming to provoke our soldiers.

Russian occupation forces used banned weapons for shelling Armed Forces of Ukraine positions in violation of the Minsk agreements. In total there were recorded 51 cases of shelling, including 24 in Mariupol and three in Donetsk and Luhansk directions.

In Donetsk direction the strongholds near Pisk, Berezove, Luhanske and Troyitske the enemy shelled with machine guns and large-calibre grenade launchers of various systems, while Avdiyivka, Nevelske, Opytne, Novhorodske and Zaitseve were shelled with mortars.

Unaffiliated MP Dmytro Yarosh announced about a successful operation of Ukrainian intelligence, the result of which was captured eight terrorists.

Terrorists actively regroup divisions between Sparatak and Yasynuvata in Donetsk region, reported the head of the “Information Resistance” Dmytro Tymchuk. He mentioned 15-16 APCs, including six tanks.

Opera singer Vasyl Slipak was killed near the village Luhanske at about 6 am by a shot from a sniper rifle, said one of the soldiers who was in combat together with Slipak. He noted that Slipak arrived at the front a week and a half ago.

Politics and Economy

The Government has approved a restructuring plan for “Naftogaz Ukraine,” which provides separation of transportation and gas storage, reported the Minister of Economic Development. The Cabinet decision on the proposal of the Minister of Economic Development and Trade Stepan Kubiv will prevent members of the Supervisory Boards of separated companies to hold positions in selling energy.

For five months 2016, foreign direct investment has amounted to USD 1.8 billion, stated First Deputy Minister of Economic Development and Trade Yulia Kuznetsova.

Starting from July 1, under a decision of the National Commission which regulates energy and utilities, tariffs on heat will be doubled. Previously Kyivites paid UAH 37-41 per 1 cu. m for hot water, in July the sum in bills will amount to UAH 63-78 (depending on the service provider and the availability of heated towel rail). The same range of tariffs on hot water is expected in other cities. In particular, in Lviv UAH 70-80 in Odesa up to UAH67,9-72,28.

Ministry of Economic Development and Trade in response to the continuing Russian embargo of food until 2017 propose to extend Ukrainian counter sanctions, stated Deputy Minister of Economic Development and Trade, Trade Representative of Ukraine Natalia Mykolska.

During the visit to Azerbaijan, the Ukrainian side will present the preliminary program of the Ukrainian aircraft An-178 construction in Azerbaijan, reported the press service of the Ministry of Regional Development.

Ukraine will attract a credit from Germany worth EUR 300 million for energy projects, infrastructure and railway, announced the Prime Minister of Ukraine Volodymyr Groisman after a meeting with German Chancellor Angela Merkel.

Ukrainian side at the meeting of the Trilateral Contact Group in Minsk asked for clarification on the “law on nationalization” in L/DNR as it completely dismantles Minsk II agreements, reported Darka Olifer, spokeswoman of the representative of the Ukrainian side in the contact group. She noted that during the discussions the representatives of the OSCE and Russia agreed that such actions are illegal and contrary to the spirit of the Minsk agreements.

The release of hostages is locked. Last week we got the warning signs of deterioration in the dismissal of people, reported Darka Olifer. According to her,

Ukraine demands L/DNR representatives to provide information on location of Ukrainian citizens.

The official website of the President of Ukraine registered e-petition claim, which asked Poroshenko to never change the Constitution without a referendum.

The Ministry of Justice of the Russian Federation said that they did not receive a request from Ukraine for conducting interrogation of ex-president Viktor Yanukovych via videoconference.

International Arena

The members of the European Union adopted a decision to extend sanctions against Russia until January 31, 2017, reported a correspondent of the “Radio Liberty” in Brussels Ricard Yozvyak.

A project funded by the Ministry of Poland to support small and medium business in Ukraine started, reported the Polish Radio. EUR 800 thousand has been allocated for realisation of the project. Polish government agencies and Ukrainian partners will participate in it. The Project provides training, business counsel and the creation of dozen of centres to service businesses. The program will be implemented over the next eighteen months, i.e. until the end of 2017.

On June 28, near the port of Zavia, Libyan Coast Guard detained tanker “Temeteron” on suspicion of carrying out smuggling oil out of Libya, reported the MFA. According to available information, the crew consisted of nine members, five of who are citizens of Ukraine. Currently the tanker is in port of Tripoli. Investigation has started.

President of the Parliamentary Assembly Pedro Agramunt again called to maintain a dialogue with the Russian parliament, said his statement on the results of a two-day visit to Moscow. According to him, “on June 24, 2016 the Bureau of the Assembly adopted a declaration confirming the role of the Assembly as a pan-European forum for inter-parliamentary cooperation between parliamentarians from all 47 member states of the Council of Europe.”

Canada confirmed its participation in the formation of a new contingent of NATO in Eastern Europe. At the moment details are unknown, but in military circles they talk about sending Canadian soldiers to Latvia, reports Radio Liberty. In mid-June, NATO defence ministers agreed on the deployment of an additional four multinational battalions in the Baltic States and Poland in response to the intensification of Russian military activity.

During 2016-2018 SEED Grant scholarship program initiators plans to invest about USD5 million in business education of Ukrainian specialists, stated the message of

Fund Western NIS Enterprise. In 2016, the fund has allocated more than USD 1 million for studying 13 Ukrainian students in the US and Britain. They will study in the best American and British universities, including Yale School of Management, Duke Fuqua School of Business, University of Michigan Ross School of Business, University of Chicago Booth School of Business and others.

Ukrainian transporters got expanded quotas and were provided free transportation and additional one thousand bilateral and 500 transit permits, reported the Ministry of Infrastructure. This will enable domestic carriers to save more than EUR400 thousand by the end of 2016. Deputy Infrastructure Minister Yuri Lavrenyuk noted that the Hungarian side initially advocated compliance with the rules of traffic on a parity basis, drawing attention to the fact that Hungarian transporters used no more than 30% of the permits for the first half, crossing the border with Ukraine about 4,2 thousand times, while Ukrainian carriers have done more than 19.3 thousand trips.

Number of victims of the terrorist attack at the airport in Istanbul was about 250 people, announced Health Minister Recep Akdag in Turkey, reported Reuters.

UK access to European Union single market is possible only if the state will ensure freedom of movement, stated the President of the European Council Donald Tusk.

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