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However, according to the amendments, criminal proceedings within the anti-corruption court's jurisdiction that are still being heard by first instance and appellate courts and are not completed shall be transferred to the anti-corruption court
Alongside the anti-corruption court legislation, two other requirements are demanded by the IMF for a new support tranche. Specifically, the Ukrainian government should increase the gas price for households, and the finance ministry should take measures to ensure that the 2018 budget deficit will not exceed the planned level.
On July 26, the Ukrainian government adopted a resolution to extend through August the below-market natural gas rates for households and heating utilities, according to Interfax news agency.
Alexander Paraschiy at Kyiv-based brokerage Concorde Capital believes that the postponement of the revision of residential gas rates for just one month suggests that the cabinet in Kyiv is still hoping to agree with the IMF on a gas rate increase plan from September.
"This means that the negotiations on gas pricing should be completed in August," he wrote in a note on July 27. "If so, by the end of the month, Ukraine could agree with the IMF staff on all the pre-conditions for the next tranche, which will allow it to get the tranche in September. So far, such a development is our base-case scenario."
By failing to increase residential gas rates by 15-19% in October 2017, Ukraine now needs a much higher increase to fully satisfy the IMF’s demands (about 60% increase), Paraschiy added.
"For instance, as of August 2018, gas prices for industrial consumers (which are in line with the import parity level) have increased by 23% since October 2017 and are 87% higher than gas rates for households," he wrote. "The Ukrainian government is trying to agree with the IMF on some gradual increase of gas rates (for instance, in its macroeconomic forecasts, Ukraine’s central bank assumed only a 25% gas rates increase this year), but so far, the IMF has not agreed this. Nevertheless, we remain optimistic about a positive outcome of negotiations on gas.
2.6 Violence looms as Constantinople confirms autocephaly to the Ukrainian Orthodox Church
In response to the Ukrainian government’s request for canonical recognition, the Ecumenical Patriarchate of Constantinople is aiming to reach a decision that will unify Ukraine’s Orthodox Christians under an autocephalous church, the press service of Ukrainian President Poroshenko reported on July 27, citing a letter read by the Patriarch Bartholomew’s representative at a meeting that day in the Presidential Administration in Kyiv.
The Constantinople patriarchate “has taken the initiative to renew the unity of the Orthodox believers of Ukraine with the final goal of granting the Ukrainian church autocephaly,” the letter said.
In response, President Poroshenko thanked the Ecumenical Patriarchate for its position. “For the majority of Ukrainians, His Holiness’s words on Ukraine not being the canonical territory of the Russian Orthodox Church are very important,” the president said.
11 UKRAINE Country Report August 2018 www.intellinews.com