Ukraine to close state offices in rebel-held east – Peninsula On

KYIV: Ukrainian President Petro Poroshenko issued decrees yesterday to shut state institutions and banking services in pro-Russian eastern regions, pressing a move to cut links with the rebel-held territory.

Ukraine has cut state funding to separatist parts of Donetsk and Luhansk regions after separatists held elections in October which Poroshenko condemned as illegal and in violation of a ceasefire agreement made in September.

The rebels, in turn, say Ukraine violated the deal by moving to revoke a law granting the regions autonomy, putting an already fragile ceasefire in doubt.

A decree posted on the president’s website said all state companies, institutions and organisations should end their work within a week and “evacuate workers, with their permission, (and) where possible remove property and documents”.

The ruling, which formally asks parliament to revoke the “special status” of the regions, also suggests Ukraine’s central bank take measures to close down banking services in certain parts of separatist-held areas, including card operations.

The presidential rulings also require Ukrainian gas producers to supply all their output in the 2014-15 seasons to the population, rather than to industry.

REUTERS