Tuesday, March 29, 2022

Statement by the Prime Minister of Ukraine Denys Shmyhal at a Government session

I greet everyone, dear colleagues, dear fellow Ukrainians. Today, for the first time since the beginning of the war, we are holding an open meeting of the Cabinet of Ministers. We will do this from time to time so that people can see that we are taking a number of steps day after day to approach our joint victory.

Most of the fellow ministers perform their activities in Kyiv. Others are now on business trips in different parts of our country to coordinate processes, communicate with people, get all the necessary information first hand, communicate with business. An important conclusion from what we see in most regions is that the country is returning to work.

I express gratitude to all the Ukrainians who are now paying taxes, hiring people,

saving jobs - you are also working for the victory and bringing it closer.

In recent weeks, the Government has developed 9 main directions of how the country will live, work, accumulate resources, defend itself in a full-scale war. Every day we fill each of these sectors with specific solutions.

The first key point is Army as the Topmost Issue. It means providing the defense forces with everything necessary. Cash payments, weapons, equipment, food, fuel, development of the military-industrial complex. All resources are primarily directed to the defense forces. Tens of billions hryvnias have already been redistributed to the army, and we will continue to do so. A separate block is weapon from abroad. I will not go into details here. I assure when we satisfy the needs of the army - we will ensure victory.

The second direction is Food Security. We have formed strategic food stocks for several years ahead in Ukraine.

Spring sowing campaign has already begun in 11 regions. The state provided farmers with the financial resource to purchase everything they need for that. Loans at 0%. State guarantees to banks. Fuel, fertilizers, seeds. All those are available.

We also help farmers with exports and will now actively expand this domain, because the country should earn.

We have launched a program of free distribution of key social products in frontline cities. The state procures more than 10 such products and then distributes them among people. It also means the support of a Ukrainian producer - the support of our food industry.

The third direction is the New Economic Policy. Drastic reduction of taxes to 2% of turnover. Abolishing VAT, abolishing income tax. Complete deregulation for business. Declarative principle of work. The world's fastest customs service. Abolition of import VAT and import duties. Loans for entrepreneurs at 0% up to UAH 60 million. Assistance in relocating businesses to safe regions.

All these together will have a strong effect and should restart the economy. We can already see the first signs of that.

The fourth is ePidtrymka and social assistance programs. In March we have conducted indexation of pensions, and in April - in the regions where hostilities are taking place, pensions are paid in advance. We cover all the social benefits. Under the ePidtrymka program the Government has paid UAH 6,500 to those who lost their jobs. 3.5 million citizens have already received such assistance. All kinds of social benefits, salaries for doctors, teachers - all these are funded and will further be paid.

Fifth. You Are at Home, or assistance to IDPs programme. Three key points of the program are as follows: housing, job, money. We have allotted 500,000 places for temporary accommodation of people. Those families who host displaced citizens will get assistance while paying their utility bills. If you shelter a family of three persons - you will receive UAH 1,350 to pay for utilities, i.e. UAH 450 per each person.

Separately, the state will pay monthly to IDPs UAH 2,000 for adults and UAH 3,000 for children or people with disabilities. We will pay UAH 6,500 to a business hiring a displaced person as a partial salary compensation for this person.

The sixth direction is the Energy Front. They have completely cut off from the energy networks of Russia and Belarus and joined the European energy system ENTSO-E. A historic step through which we have confidence and stability. All types of generation operate. Coal reserves are in storage facilities. We have pumped up 9 billion cubic meters of gas in storage. Gas production for the first 3 months dropped a bit compared to the previous year.

Regarding fuel at petrol stations. We have removed excise duty, reduced VAT from 20% to 7%. As you can see, the price of gasoline fell by 10 UAH. Agreements have been reached with European refineries to provide the country with fuel. Thousands of tons of fuel are shipped to Ukraine.

The seventh direction is Wartime Logistics. The Ukrzaliznytsia JSC has become one of the major companies for the state. Thousands of tons of cargo and hundreds of thousands of people are transported on daily basis. Separate logistics routes have been opened for motor transport. We are building new warehouses on the western border, and we also plan to open new checkpoints there in the near future.

Eighth. World Stands with Ukraine. Three key areas include humanitarian aid, sanctions against the aggressor, financial assistance.

Humanitarian aid issue – such assistance are now cleared at the border in 10 minutes with a 1-page declaration. There are no queues. No permits required. Since March 4, 160,000 tons of such humanitarian aid have been delivered.

Next, pertaining to sanctions: they are unprecedented. Russia is isolated, but this is certainly not enough. The aggressor’s economy must deteriorate to the level of the 19th century but not the 90s. It deserves such a punitive measures, so we will continue negotiations with our partners about the embargo on oil purchases, on the ban on Russian ships to enter European ports, on the closure of all western companies in Russia.

Meanwnile, we talk every day about financial support for Ukraine. More than $ 3 billion is the resource we have already obtained. We are negotiating another $ 10 billion support. And this is just the beginning.

The ninth direction is the restoration of Ukraine. Again, three vectors. The first is a competent calculation of all the losses incurred by our people and our state from this aggression. The second is the freeze and seizure of all Russian funds and assets abroad. The third is the accumulation of funds from partners in the Destroyed Property and Infrastructure Restoration Fund.

We are talking about a new Ukraine Rehabilitation Plan, which will unite the countries of the globe: from the United States to Japan, from Australia to Canada. European countries stand ready to show leadership in this matter, and we hope it will be demonstrated not just in words, but we will really see what a united Europe is, what a united world around Ukraine is.

Certainly, we are continuing negotiations to intensify preparations for our accession to the EU. Ukraine should receive the candidate status to get membership in the European Union not sometime in the future, but already now. We are actively working on this.

Dear Ukrainians!

Behind each of these great programs and each of these items that I have voiced, there are great professional teams to make everything work for our victory.

Our strategy for the economic front is shaped. The state and society are united as never before. The Ukrainian people are united as never before. So we will definitely defeat our enemy.

I thank everyone for the work.

Now let's move on to the agenda of our session.


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