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Accords aimed at ending the armed conflict in Donbas.
The Kremlin’s November 1 sanctions imposed on Ukrainian individuals and enterprises don’t affect goods imports from Ukraine , the Interfax news agency reported on November 14, citing an anonymous source in the financial-economic section of the Russian government. The November 1 resolution “only affects financial relations and doesn’t impose a ban on trade agreements involving third parties,” he said. Therefore, the physical delivery to Russia of products made by companies targeted by the sanctions can be fulfilled if the sides use a payment model that doesn’t violate the restrictions regime, the source said, and “a separate document” is needed to stop them at customs.
Corruption depresses Ukraine’s annual growth by two percentage points,
Goesta Ljungman, the IMF Representative in Ukraine told reporters on Tuesday. The Economy Ministry’s consensus forecast for 2018 GDP growth is 3.1%. “Of course, economic growth by 3% per year is better than the 10% decline that Ukraine underwent in 2015,” said Ljungman, a Swede. “But, if you look at the context, the developing countries of Europe are now growing at an average of 4-5% per year, which indicates insufficiently rapid restoration of Ukraine.” The consensus forecast for next year is 3%.
Individuals and companies associated with the son of fugitive ex-President Viktor Yanukovych withdrew almost Hr 2bn ($72mn) from his bank in 2016-2017 through the bank of President Petro Poroshenko, Radio Free Europe/Radio Liberty’s Schemes investigative television show reported on November 8. By Schemes’ estimates, Poroshenko’s bank made Hr 20mn ($716,159) from the transactions. Poroshenko’s bank refused to comment on the transactions to Schemes, referring to its bank secrecy policy, but said it did nothing illegal.
Ukrainian Foreign Minister Pavel Klimkin and US Secretary of Energy Rick Perry agreed to jointly oppose the implementation of the Russian Nord Stream 2 project , during the US energy secretary’s visit to Kyiv this week. Ukraine has been resisting the construction of an expansion to the Nord Stream pipeline that connects Germany directly to Russia’s Yamal gas fields, but would effectively cut Ukraine out of the loop. Ukraine earns a badly needed $3bn a year from gas transit fees from Russia. Perry also met with President of Ukraine Petro Poroshenko. The meeting announced the start of the Ukrainian-American strategic energy dialogue. The parties expect to establish "close cooperation" between Ukrainian and American companies and organizations. "The need for further opposition to the Nord Stream 2 project, as well as diversification of energy sources, in particular, by expanding opportunities for the supply of liquefied gas from the United States, was noted," the Ukrainian leader’s website said in a statement. Perry said that the United States retains the possibility of imposing sanctions against the "Northern Pokot - 2". “This option is retained, but it is clear that the US is very much afraid of a lack of diversification in Europe,” said Perry. According to him, the new gas pipeline may “even more” increase the dependence of European countries on Gazprom in a well used trope.
Prosecutor General Yuriy Lutsenko submitted his resignation on November 6 to parliament after drawing wide criticism for his alleged mishandling of the investigation of the murder of Kherson activist Kateryna Handziuk. Lutsenko, who is closely aligned with President Poroshenko,
17 UKRAINE Country Report December 2018 www.intellinews.com