Page 12 - UKRRptNov18

2.5 Politics - misc
The Russian government published on Nov. 1 its list of economic sanctions that target 322 Ukrainian citizens and 68 enterprises . The sanctions call for freezing their bank accounts, financial securities, and real assets. Those targeted also can’t transfer capital to and from Russian territory. The list consists of leading Ukrainian entrepreneurs, politicians and state officials. The Russian sanctions came in response to a June order by Ukrainian President Poroshenko to impose sanctions against 30 Russian enterprises and 14 individuals.
The Ukrainian government has extended the so-called public service obligations (PSO) for the sale of natural gas for the needs of households and municipal heat supply companies at a reduced price until October 18. In March, the cabinet ruled that the public service obligations for the sale of gas to the public and heat supply companies would be in effect until April 1, however later, the government extended them several times - the last one until the end of September. The increase of the gas price for households is a crucial condition for the latest $2bn tranche due from the International Monetary Fund (IMF) and part of its $17.5bn package agreed with Kyiv in 2015 alongside the adoption of the anti-corruption court legislation, and the implementation of measures to ensure that the 2018 budget deficit will not exceed the planned level. According to latest media reports, Ukraine and the country's main donor, the IMF, are discussing possible repackaging undrawn funds from the existing $17.5bn Extended Fund Facility (EFF) agreed in 2015 into a $5bn-$6bn Stand-By Arrangement (SBA). The new support programme will be drafted and cover a 12-15 months period rather than the five year long programme currently in place. The Ukrainian government needs to accede to a 23% hike in the gas price for households by October 23 as part of the current talks.
To maintain freedom of shipping in the Sea of Azov, Ukraine is lobbying the US and the EU to threaten Russia with trade sanctions against its Black Sea ports, Infrastructure Minister Volodymyr Omelyan told reporters Monday on the sidelines of the US-Ukraine Business Council meeting. Since April, Russia has caused $35mn in damages to shippers and Mariupol port by detaining foreign merchant vessels in the Azov for ‘inspections.’ Analysts say a clear candidate for sanctions is Novorossiysk, 150 km southeast of Kerch
12 UKRAINE Country Report November 2018 www.intellinews.com