October 30, 2015

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House resolution on Ukraine elections

WASHINGTON – On October 20, the U.S. House of Representatives passed H. Res. 348, “Supporting the right of the people of Ukraine to freely elect their government and determine their future.” The resolution reads in part: “Whereas the Russian Federation has continued to engage in relentless political, economic, and military aggression to subvert the independence and violate the territorial integrity of Ukraine; …Resolved, that the House of Representatives: (1) strongly supports the right of the people of Ukraine to freely elect their government and determine their future;(2) urges the administration to expedite assistance to Ukraine to facilitate the political, economic and social reforms necessary for free and fair elections that meet international standards; and (3) condemns attempts on the part of any outside forces, including the government of Russia, its agents or supporters, to interfere in Ukraine’s elections, including through interference, intimidation, violence, or coercion.” Rep. Ed Royce, (R-Calif.), chairman of the Foreign Affairs Committee, stated, “Almost two years after the conflict in Ukraine began Russian aggression remains a daily reality. …Unfortunately, elections can’t be held in the areas controlled by Russian-led separatists because intimidation and manipulation make free and fair elections impossible. But the elections held in the rest of the country will demonstrate that Ukraine is continuing to implement democratic reforms and that the Ukrainian people are determined to bring peace to their country.” (U.S. House of Representatives)

U.S. donates FM radio transmitters

KYIV – On October 23, the United States transferred to Ukraine the first in a series of shipments of broadcast equipment to help improve Ukraine’s technical capacity to broadcast into eastern Ukraine. Deputy Minister for Information Policy Tetyana Popova received three FM radio transmitters on behalf of the Ukrainian government. The transmitters will be provided to Donetsk TV and Radio to broadcast into denied areas in the east. “The equipment donated today by the U.S. government will significantly enhance Donetsk TV and Radio’s ability to reach a bigger audience, and will help significantly improve the quality of its radio programming,” Deputy Minister Popova said. Ambassador Geoffrey Pyatt also spoke out strongly in support of Ukraine’s efforts to communicate with Ukrainians living in the Donbas. “By helping Ukraine broadcast into areas previously impossible to reach due to the destruction wrought by Russia’s proxies, the United States is helping ensure that the residents of Donbas have access to accurate, high-quality news and information. It’s important that the Ukrainian government continue to reach out to those living in separatist-controlled areas in Donetsk and Luhansk. These tools and technology will be critical to Ukraine’s efforts to respond to the information war the Kremlin is waging against Ukrainian citizens living in the east.” (U.S. Embassy Kyiv)

U.S. expands Deutsche Bank-Russia probe

LONDON – The Financial Times of London newspaper reports the Germany’s Deutsche Bank is facing an expanded money laundering investigation by U.S. authorities into its activities in Russia amid evidence of possible violations of international sanctions. The report says some scrutinized transactions made by Deutsche Bank’s Moscow unit allegedly involved U.S. dollars and a former banker who is a U.S. citizen. The newspaper says it is one of the first known U.S. investigations of a Wall Street company that has been tied to potential breaches of western sanctions against Russia since the measures were imposed following Russia’s 2014 annexation of Crimea. It says the probe is focusing on some $65 billion worth of so-called mirror trades, in which Russian clients bought securities in Russian rubles through Deutsche Bank’s Moscow office and then sold identical ones for foreign currency, including U.S. dollars, through the bank’s London office. (RFE/RL, The Financial Times of London and Bloomberg Business)

Ukraine elections come amid recession, conflict

KYIV – President Petro Poroshenko faces a test of his unpopular belt-tightening measures when Ukraine votes in local elections on October 25. The polls, which will exclude the pro-Russian separatist east, come during a lull in fighting but as the country suffers a devastating recession that has turned it into Europe’s second-poorest country. Twenty months have passed since the ex-Soviet state toppled a Kremlin-backed leader and turned toward the West. But Russia’s subsequent annexation of Crimea and the Moscow-backed eastern revolt that followed stripped the country of its industrial heartland and strategic naval bases, ultimately crippling its economy. In the wake of these events, the popularity of Poroshenko’s government has fallen so sharply that Prime Minister Arseniy Yatsenyuk’s approval ratings are now barely above zero. The public’s frustration at the West’s refusal to arm Ukraine and only provide financial help, with tough austerity strings attached, has bolstered the odds of the far right and the pro-Russian groups gaining ground, analysts say. Such an outcome could prompt Poroshenko’s loosely knit coalition to splinter, which would in turn imperil his plans to move further toward the West. (RFE/RL, AFP)

Ukraine rejects Moscow bid to stop flight bans

KYIV – Flights between Ukraine and Russia will be banned starting this weekend despite a last-ditch effort by senior Russian officials to prevent the ban, Ukraine’s infrastructure minister said October 24. “From October 25, there will not be air traffic with Russian cities,” Minister Andrei Pivovarsky told Russian news agencies. Russian and Ukrainian officials met in Brussels October 23 as part of a Russian-led effort to prevent the Ukrainian-initiated ban on flights between the countries. Russian Transportation Minister Maxim Sokolov told reporters that his country would continue to push for the bans to be removed, arguing that Ukraine should go along because 75 percent of air travelers between Russia and Ukraine are Ukrainian. Ukraine announced late last month that it would ban flights from Russia starting on October 25. Russia quickly retaliated with a
tit-for-tat ban that would go into effect on the same day. Ukraine made the announcement despite several weeks of relative calm in the country’s two eastern-most regions. (RFE/RL, dpa new service and TASS)

Ban on Russia–Ukraine flights takes effect

KYIV – Direct flights between Ukraine and Russia have been grounded as new sanctions initiated by Kyiv came into effect. Flights stopped on October 25, after last-minute crisis negotiations between the two sides failed. Kyiv announced late last month that it would ban flights by Russian airlines in reprisal for Moscow’s March 2014 annexation of Crimea. Russia called the ban “madness” and said it would mirror the move. Tens of thousands of passengers will be affected by the bans every month. They will now be forced to take longer, more expensive routes via third countries, or to brace themselves for a 13-hour trip by train. (RFE/RL, AFP, the BBC, and TASS)

Rebels ban doctors, U.N. agencies in Donetsk

DONETSK, Ukraine – Russia-backed Ukrainian rebels said on October 23 they had banned the Doctors Without Borders (MSF) charity group and United Nations agencies from operating in Donetsk. MSF provides crucial medical care for patients in the separatist-held area, especially those suffering from diabetes and kidney failure, as well as operating an anti-tuberculosis program in Donetsk prisons. A representative of the self-proclaimed Donetsk People’s Republic told AFP: “I can confirm the decision to strip its (MSF’s) accreditation.” MSF and nine other UN agencies and charity groups were kicked out of the neighboring rebel region of Luhansk in late September for not having required accreditation. MSF director of operations Bart Janssens called the latest decision disturbing and “vague,” and said the group was “extremely worried.” “MSF is the largest player in the region and now we will have to stop people’s treatment,” Janssens told AFP. UN agencies such as the World Food Program were also banned as they did not have the necessary accreditation. The rebels said that they had spared the International Committee of the Red Cross and the Czech Republic’s People in Need – two other earlier targets of alleged violations of accreditation requirements. The UN food program would still be able to carry out some of its functions through the People in Need group, they said. In Luhansk, separatists accused MSF of “illegally storing psychotropic medication” that lacked proper registration in either Russia or Ukraine. MSF denies the allegation. (RFE/RL, AFP and pressorg24.com)

Merkel: EU-Ukraine accord isn’t against Russia

BERLIN – German Chancellor Angela Merkel has said a European Union free trade agreement with Ukraine is not directed against Russia. Ms. Merkel also told a German-Ukrainian economic conference in Berlin on October 23 that Germany wanted good economic ties with both Ukraine and Russia. “In contrast, we want Ukraine to have good economic relations with the European Union, with Germany but at the same time also with Russia,” she said. The EU-Ukraine Association Agreement was signed last year. Backers regard the deal as crucial for anchoring Ukraine to the West, while Moscow views it as a challenge to Russian interests in its so-called near abroad. Ms. Merkel also urged Ukraine to continue with its economic reforms and tackle corruption and roll back the influence of oligarchs. She said German businesses are ready to invest there if the right conditions are in place. Ukrainian Prime Minister Arseniy Yatsenyuk told the gathering that Ukraine has started to see some positive signs in its economy in recent months but added that the country needed Germany’s help to implement its reforms. (RFE/RL, Reuters)

Crimean Tatar memorial desecrated 

SYMFEROPOL, Crimea – A memorial plaque in memory of the victims of the 1944 deportation in the settlement of Koreiz has been vandalized.  Local residents told the Radio Svoboda Crimean Service that they had discovered the plaque covered in yellow paint at around 9 a.m. on October 21.  There were municipal service  workers standing there, ready to wash off the paint, and a witness believes that they were hoping to cover up the incident. The local residents refused to accept this and insisted that the police be called. The latter arrived and recorded the incident.  Whether a criminal investigation is initiated remains to be seen. Acts of vandalism directed at Crimean Tatar places of importance happen regularly, with the de facto authorities in no hurry to investigate.  The Crimean Tatar Qurultay reports that those responsible for arson attacks on mosques in Crimea over the past two years have still not been found. Eskender Bariev, Coordinator of the Crimean Tatar Rights Group reported back on July 25 that vandals had destroyed a gravestone in the township of Otuz (Shchebetovka)   The police had refused to accept the report of the vandalism, saying that it wasn’t within the jurisdiction of the Shchebetovka Council. It would certainly not be true to say that the police before Russia annexed Crimea were much more proactive in fighting vandalism directed at Crimean Tatar places of significance; however, the attacks are now coming at a time when Crimean Tatars are generally experiencing serious infringements of their rights under the occupation regime. Within months of occupation, Crimean Tatar leaders Mustafa Dzhemiliev and Refat Chubarov had been banned from their homeland. Akhtem Chiygoz, the Deputy Head of the Mejlis or Crimean Tatar representative assembly, has been imprisoned since January in a legally absurd case which is specifically targeting Crimean Tatars. On May 18, 2014, the seventieth anniversary of the 1944 Deportation of the entire Crimean Tatar People from their homeland, the occupation regime tried to ban remembrance gatherings altogether, then this year there were heavy-handed measures taken and detentions of Crimean Tatars taking part in a traditional car procession across Crimea. (risu.org)

EU court lifts asset freeze on Portnov

KYIV – An EU court has ruled that the bloc had been wrong to freeze the assets of a former adviser to ousted Ukrainian President Viktor Yanukovych. The EU placed Andriy Portnov for a year from March 2014 on a blacklist of individuals suspected of stealing Ukrainian public funds before Mr. Yanukovych was brought down by street protests. The EU’s General Court said on October 26 that Mr. Portnov’s inclusion on the list was based solely on a letter from the Ukrainian Prosecutor-General’s Office that an investigation into Mr. Portnov and others had shown a sizeable misappropriation of state funds and their illegal transfer out of Ukraine. The letter “fails to provide any details concerning either the facts alleged against Mr. Portnov or his responsibility in that regard,” the Luxembourg-based judges argued. The ruling can be appealed within two months before the European Court of Justice. (RFE/RL, Reuters, dpa)

Russia’s reserve funds running out

MOSCOW – Russian Finance Minister Anton Siluanov says the country’s Reserve Fund could be exhausted by the end of 2016 if world energy prices remain at current levels. Speaking to reporters in Moscow on October 27, Mr. Siluanov said the budget shortfall for 2015 is expected to be 2.6 trillion rubles ($41 billion). He predicted the budget shortfall for 2016 at 900 billion rubles if oil prices remain around $45 per barrel and a ruble exchange rate of 62 rubles to the dollar. “This means that 2016 is the last year when we are able to spend our reserves in this way,” he added. “After that, we will not have such resources.” Siluanov said that as a result of the dwindling reserves, “the matter of consolidating the budget must be the No. 1 task on our agenda.” The Russian economy has been hit hard by sanctions imposed by the United States, the European Union, and other countries because of Moscow’s 2014 annexation of the Ukrainian region of Crimea and its support for separatists in eastern Ukraine. In addition, Moscow has spent billions on projects such as the 2014 Winter Olympics in Sochi, the reconstruction of Crimea, and its military campaign in Syria. (RFE/RL,Dozhd TV and TASS)

Ukrainian soldier killed near Donetsk

DONETSK, Ukraine – Ukrainian soldier has been killed by fire from Russia-backed separatists near the Donetsk airport, Ukrainian officials say. The soldier was killed on October 26, military spokesman Oleksandr Zavtonov was quoted as saying on October 27. It is the first reported Ukrainian military death since mid-October, as the fragile cease-fire negotiated in Minsk in February has generally held. On October 26, a spokesman for the separatists accused the Ukrainian military of launching an attack on the airport. Officials in Kyiv denied that claim. AFP reported that local residents said they heard heavy firing in the area of the airport overnight. More than 8,000 people have been killed in the fighting in eastern Ukraine over the last 18 months. (RFE/RL, AFP, Interfax)

Exit polls released on Ukraine’s local elections

KYIV – Four exit polls from Ukraine’s local elections released on October 26 indicated the government of President Petro Poroshenko would retain its dominant position in the west and center of the country. But in the south and east, voters favored the Opposition Bloc, formed from the remnants of the party of the former pro-Russia President Viktor Yanukovych who was overthrown in early 2014 after months of street protests. Mr. Poroshenko hailed the exit polls as showing no single party did well enough to upset his government and said it was a victory over Russian attempts to control the country. Moscow’s attempts “to create a pro-Russian fifth column in Ukraine [are] in shambles,” he said. “With these elections, the Ukrainian people, the Ukrainian society, has crossed a rubicon that rules out our return to the past.”  The Central Election Committee said it had received data from only 30 percent of the vote by the morning of October 26, reflecting the challenge of calculating the results of elections for more than 10,700 local councils as well as mayors. More than 130 parties fielded candidates. Complete results were expected November 4. Elections were held nationwide on October 25, except for parts of the Donetsk and Luhansk regions of eastern Ukraine controlled by Russia-backed separatists. In eastern areas recaptured by government forces, former separatists ran for office as candidates from the Opposition Bloc. Mr. Poroshenko’s party and others in his coalition had hoped to expand their influence through the local elections, but this proved not so easy to do. “The disposition of forces shows that the country is divided,” political analyst Vladimir Fesenko said. The elections also were seen as a test of strength for oligarchs accustomed to holding sway in their own regions. In Mariupol, a major port and steel city on the Sea of Azov, voting was scrapped because of tensions over the influence of Rinat Akhmetov, Ukraine’s richest man whose industrial holdings are key to the city’s economy. The Mariupol election commission refused to accept ballots printed by a company owned by Mr. Akhmetov, who supports the Opposition Bloc. Political conflicts also led to the postponement of elections in the eastern cities of Krasnoarmiisk and Svatovo. No date has been set for holding those elections. The Associated Press reported that the winner of the mayoral race in Kyiv and several other big cities will be decided only in a second round on November 15 because none of the candidates got more than 50 percent of the vote. In Kyiv, the capital, AP said the exit polls showed the incumbent mayor, former heavyweight boxing champion Vitali Klitschko, with a strong lead. In Dnipropetrovsk, another major industrial city, AP said the party associated with local tycoon Ihor Kolomoysky was on track to dominate the city council. His mayoral candidate faced a second round. (RFE/RL, AP, TASS, AFP)

OSCE: No monitors removed from Luhansk

LUHANSK, Ukraine – Russian-backed separatists in eastern Ukraine say they have expelled two OSCE monitors, but the organization denies the allegation. A separatist leader in the Luhansk region, Vasily Nikitin, said on October 26 that the two monitors had “violated the Minsk agreements” aimed at ending the conflict in eastern Ukraine. An unidentified official in Luhansk said the monitors were asked to leave last week. But the deputy chief of the OSCE’s Special Monitoring Mission, Alexander Hug, said in a statement that “no monitors have been removed” from the Luhansk region. The Organization for Security and Cooperation in Europe (OSCE) is responsible for monitoring the implementation of the cease-fire deal signed in Minsk in February and for coordinating peace talks between Kyiv and both Moscow and Ukraine’s separatists. Fighting between government forces and separatists has killed more than 7,900 people in eastern Ukraine since April 2014. (RFE/RL, AFP, Interfax)