Date—July 29, 2022

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Stories

1. The Verkhovna Rada, by resolution #7594, created the TSK on violations of legislation that led to crisis phenomena in the energy market of Ukraine on the eve and during the armed aggression of the Russian Federation against Ukraine. Oleksiy Kucherenko is appointed as the head. 268 People’s Deputies voted “for”. Denys Maslov was also appointed as the new Chairman of the Legal Committee of the VRU. 278 People’s Deputies voted “for”. Taras Batenko officially became the sole chairman of the MP group “For the Future”. Olga Sovgyrya, who was involved in the signing of the Kharkiv Agreements, became the new judge of the Constitutional Court.  (Source: Telegram).

War

1. Five people were killed and another 25 were injured as a result of a Russian missile attack on Kropyvnytskyi in the afternoon on Thursday, July 28, OVA head Andriy Rajkovich said during a briefing. Russia attacked Kropyvnytskyi with Kalibr missiles, and the number of wounded increased to 26. Among the injured were 12 servicemen and 13 civilians. Russian missiles hit the hangars of the airline. “There were two hits on the hangars of the flight academy of the National Aviation University… There are material losses: two civilian planes and one AN-26 plane,” he said. On the morning of July 28, the terrorist country Russia launched a massive missile attack on the northern regions of Ukraine — Kyiv, and Chernihiv. Some of the rockets hit the suburbs of Kyiv, in particular, the military unit in the Vyshgorod district. As a result of the strikes in the Kyiv region, 15 people were injured, and the General Staff of the Armed Forces confirmed “losses in personnel.” On July 28, the Russians almost completely destroyed the school building by shelling Mykolaiv, the yacht club, the warehouse of the agro-industrial enterprise, and farm buildings were damaged. (Source: NV).

2. The Kremlin infiltrated Ukraine’s state apparatus with secret agents who, through bribery and persuasion, were supposed to pave the way for a Russian invasion. When the Russian military reached the Chornobyl nuclear power plant on February 24, Ukrainian units were waiting for them there, tasked with protecting the dangerous facility. However, in less than two hours without a fight, 169 fighters of the National Guard of Ukraine laid down their arms. It was not an accident but part of a planned operation by the Kremlin. Thanks to the help of agents, it would have taken Moscow only a small number of military men and a few days to achieve dismissal or capitulation. Among those recruited were, for example, Ukrainian investigators involved in counterintelligence. Oleksiy Danilov, secretary of the National Security and Defense Council of Ukraine, said that at the start of the war, Russian agents were operating in law enforcement agencies and defense and security services. In addition, Russian agents were sent to Chornobyl last year to bribe officials and pave the way for a bloodless takeover. Although Russia took over Chornobyl, its plan failed to seize power in Kyiv. In many cases, sleeper agents introduced by Moscow have not done their job. Danilov, secretary of the Ukrainian Security Council, said the agents and their handlers considered Ukraine weak, a “complete delusion.” Russian spies were successful in one thing – they sowed mistrust within Ukraine and exposed problems in the Ukrainian SBU. One of the results of this was the recent dismissal of the head of the department, Ivan Bakanov. (Source: Reuters).

Opinions

1. Zheleznyak: In the US, discussions have already begun as to whether they are already in recession or not. On July 28, the data for the II quarter were published, and the GDP of the USA decreased by 0.9%, writes People’s Deputy of Ukraine Yaroslav Zheleznyak. This decline is already occurring for the second quarter in a row and can therefore be called a “recession.” On the other hand, the National Bureau of Economic Research (a pool of analysts) officially declares a “recession,” taking into account GDP, employment, and other indicators. It is not known what their decision will be. A similar problem exists in the Eurozone, where the latest data on GDP and inflation are to be announced today, July 29. And there, the expectations are very negative: GDP is at best stagnant and will continue to fall. And for inflation, they blame the Russian Federation and its blackmail. The world is entering turbulent economic times. (Source: Telegram).

2. ISW: In the east, Russian troops were likely to concentrate on the advance on Bakhmut, reducing the intensity of attempts to take Seversk. The Russian military is trying to use their small recent territorial acquisitions southeast of Bakhmut (Novoluganskoye and the adjacent power plant) and develop this offensive. The ISW sees the strikes against Ukrainian positions near Kharkiv as possible signs of preparations for a new offensive against Kharkiv from the north and northeast. In the southwestern sector of the front, in the Kherson region, the Russians are probably losing territory. True, in deciphering this assumption, the authors of the report provide indirect evidence of the existence of Ukrainian bridgeheads on the left bank of the Ingulets River, north of Kherson, but Ukrainian sources have already spoken about the existence of these bridgeheads. (Source: ISW).

Economy, Social life, and Culture

1. The NBU has decided to sell currency on the cash foreign exchange market as well, and not only on the interbank market, strengthening measures to stabilize the situation on the cash foreign exchange market and deciding to sell currency on this market segment as well, says Oleksiy Lupin, director of the open markets department of the NBU. The results of this decision will be visible on the market on Thursday-Friday. You need to deliver cash to branches, buy it (if not), etc. The system is inertial,” noted the representative of the Central Bank. At the same time, he noted that the situation is complicated by the fact that since the beginning of July, the share of non-bank exchangers in the market is 78%. “But the decision has been made,” Lupin emphasized. On July 21, the National Bank of Ukraine sharply increased the exchange rate dollar to UAH 36.5686/$. (Source: NV).

2. Ukravtodor appealed to the holders of Eurobonds with a proposal for a two-year postponement of their payments and the same two-year extension of their circulation period. It is about $700 million worth of debut Eurobonds issued in June 2021 under state guarantees and maturing in 2028 at a rate of 6.25%. Ukravtodor emphasized that this proposal is a continuation of a similar proposal made by Ukraine on July 20. “The proposal provides Ukravtodor with relief from liquidity outflows … for 24 months, which allows it to focus available financial resources on the necessary efforts to restore and maintain the road network in Ukraine. Ukravtodor asks the owners to approve the proposed changes on terms essentially similar to those offered by Ukraine, the guarantor of securities, in connection with the request for consent to the issuance of Eurobonds,” Ukravtodor said in a statement to the London Stock Exchange. Applications from Eurobond holders are accepted until the end of the working day on August 9, and the results are expected to be announced on August 10. The nearest payments from Eurobonds from December 24, 2022, and those following them are proposed to be moved to December 24, 2024, respectively. During this period, interest will be accrued on them at the current rate. On July 20, Ukraine offered the owners of Eurobonds to postpone all their payments and repayment terms for two years from August 1, keeping the current yield rates. According to the Frankfurt Stock Exchange, on July 28, Eurobonds of Ukravtodor were quoted for 17.27% of the face value, slightly lower than the quotation of sovereign Eurobonds of the same maturity year (about 20.7%). By Resolution No. 829 of July 26, the Cabinet of Ministers approved the terms of the proposed agreement with Ukravtodor Eurobonds, extending the guarantee for the proposed grace period of 24 months. (Source: NV).

Invasion Damage

1. Due to the full-scale invasion of the Russian Federation into Ukraine, more than 720 Ukrainian Internet operators suffered significant losses. According to the World Bank, the telecom market lost $2.6 billion. The Ministry of Digital Transformation reports that the World Bank estimated the failures of the Ukrainian telecom market due to the full-scale invasion of the Russian Federation in Ukraine at $2.6 billion. More than 720 Ukrainian Internet operators suffered significant losses. In particular, the digital infrastructure was destroyed, and hundreds of kilometers of cable and thousands of pieces of equipment were damaged. Almost a quarter of all Internet networks in the country were destroyed. There are more than 1.7 million fixed communication lines and more than 3,000 mobile base stations. According to the estimates of the World Bank, to restore the telecom sector, $1.79 billion is needed to clear the territories from the debris of missiles and the consequences of the invasion and to restore the infrastructure; $710 million – is for the purchase of towers, cables, fiber and equipment for construction; $100 million is estimated to be the number of companies’ losses due to non-received subscription fees. Operators in the east of Ukraine suffered the most considerable losses. Operators providing services in the Kharkiv region suffered 22% losses, Zaporizhia region — 18%, Donbas — 17%, Kherson region — 10%, Chernihiv region — 6%, Luhansk region — 7%. The World Bank estimated the economic losses of the telecom market at more than $0.1 billion — companies provide 22% fewer services than before the full-scale invasion. They continue to lose profits. Earlier, the most prominent Ukrainian fixed-line operator Ukrtelecom reported a 15.6% drop in revenues due to the Russian aggression. (Source: NV).

Foreign news

1. The US Senate passed a resolution calling the State Department to declare Russia a sponsor of terrorism for actions in Chechnya, Georgia, Syria, and Ukraine that have resulted in “the death of countless innocent men, women, and children,” the document says. A similar resolution is planned to be adopted in the House of Representatives of the US Congress, where Speaker Nancy Pelosi strongly supports this measure. The State Department has the right to declare the state a sponsor of terrorism. The list now includes Cuba, North Korea, Iran, and Syria. Although the resolution is not binding, it demonstrates pressure from lawmakers on the administration of US President Joe Biden, the newspaper notes. Earlier this week, State Department spokesman Ned Price said the department is responsible for enforcing laws passed by Congress. So he answered the question of whether the White House is worried that the recognition of Russia as a sponsor of terrorism will complicate any future negotiations on a cessation of hostilities in Ukraine. In turn, the Kremlin negatively assessed the consequences for relations with the United States if Russia is recognized as a sponsor of terrorism. The Russian Foreign Ministry called the possible statement by the Congress a “propaganda move” that Moscow will not leave unanswered. (Source: NYT).