Opening statement of the acting Prime Minister of Ukraine Serhiy Arbuzov at the meeting of the Government on February 12, 2014

I welcome members of the Cabinet of Ministers, media representatives, all the attendees!

First of all, I acclaim reconciliation in the streets.

Fortunately, the previous week was marked by certain tranquility in the plane of political confrontations – there were not any signs of aggression or clashes.

I consider the negotiation process must be prolonged.

We must remove the political factor in our economy.

The authorities have made advances – the Amnesty Law was approved.

I hope that this week already an order and peace conquer the streets of Ukraine’s towns.

Prerequisites have been created for that – occupied earlier regional state administrations are gradually returning to work. Local executive authorities must work normally, first of all – to finalize approval of the local budgets. Presently, there have been agreed around 70% of them on various levels.

Hence, I suggest the protesters to free those administrative buildings that remain blocked for now.

Regarding the situation on the currency market

Significant decisions were taken by the NBU last Thursday.

It is disappointing that the people who had yielded to negative spirits suffered losses on the operations with currency. Overreaction to any market events has always been handy for the speculators.

The National Bank has intensified monitoring and control over the dynamics of the market targeting reduction of the speculative demand.

The introduced measures are considered timely and efficacious.

Already today they have shown the stabilizing effect and made a calming signal to the market.

The participants of the market got convinced that the National Bank possesses sufficient instruments to ensure stability.

For now the situation on the currency market is controllable.

The course could undergo certain fluctuations in both sides – it is an absolutely normal market situation. Meanwhile, the National Bank manages to curb excessive fluctuations and counteract the speculations.

I want to remind that the citizens of many developed countries keep their savings in national currency. So, in Poland 92% deposit accounts are open in zlotys, in Czechia – 96% in korunas. Our neighbors Russia – 79% in rubles.

In such a way they support both financial stability and the economic growth.

With regards to the strategic line in the direction of reforms

It is evidently that Ukraine is having a hard political period.

The political problems must be solved.

But we shouldn’t divert attention from the essential issue: the country needs economic changes.

No matter how the situation is developing, what format has the government, it must solve the topmost issue – reforms.

The more so it is the task which is set to us by the President of Ukraine Viktor Yanukovych.

The list of reforms is evident for everyone – for the government and for the opposition:

Budget stabilization.

Simplifying and further upgrade of tax area.

Purification from corruption all authority branches.

Shortening of government expenditures.

Future deregulation.

Reform of energy sector.

It is the principal list of reforms Ukraine is not capable to move forward without.

I underline once again: I consider this list a universal one.

The realization of it is the key to success of our economy and harmony within the society.

We must undertake the task immediately.

We are ready.

We possess motivation (overcoming the crisis).

Let’s work for the country instead of ranking.

Intensifying of cooperation with our principal partners, including with Russia, facilitates that.

The assistance was rendered in the time we needed that badly.

It gives the chance for the country to face the future with optimism.

Speaking about the new conditions of registration of property

Today, February 12, Resolution of the Cabinet of Ministers of Ukraine №868 comes in effect, the one containing new rules of registration of property in Ukraine.

The new rules will simplify a procedure of registration of property.

Firstly, the citizens will have an opportunity to register their property via post or a courier service. Secondly – to register property right on property object in case of loss of the state act. Thirdly – the list of necessary documents to register in new buildings have been shortened.

State registration of the right for property built as a result of activity of cooperative societies has been simplified.

The new rules also simplify the state registration of rights derived from the property right – rent, mortgage.

The state registration of state and communal immovable property rights of objects built in Soviet times will become possible.

A series of other changes is envisaged to simplify the rules of property rights registration for the citizens.

The Government continues paying efforts directed to simplifying of conditions of making business in Ukraine

Facilitating to stir up entrepreneurship demands, first of all, maintaining a dialog with business and solving urgent issues.

Issues raising concern of the business structures today regard:

Political instability in the country that has already caused worsening of ranking positions of Ukraine a sovereign borrower;

Minimizing of losses felt by business in this connection;

Situations on foreign currency market and currency risks;

Government support of business and encouraging investments;

Protection of investor rights and fight against raiding.

I believe that within nearest time the political situation will be stabilized. Hence, the political factor will cease to influence significantly the economic processes in the country. 

Of course it is disappointing that certain ranking agencies assess Ukraine rather negatively. The investors demonstrate circumspection and we take it with understanding.

Business doesn’t like political uncertainty which hampers to plan future steps, in the first place – long-term strategic projects.

Together with that, there are no objective economic grounds for significant loss of trust to Ukraine.

With regards to the government support of entrepreneur initiatives and encouraging investments, the policy of the Government has always been consistent in this direction.

I commission the Minister of Economic Development and Trade and Minister of Incomes and Fees to study an opportunity concerning:

-       deep use by investors of such instruments as tax privileges for the projects in priority economy branches and their improvement with the view to the current situation;

-       moreover, it is necessary to analyze additional instruments of encouraging investments.

A significant task is raising of transparency of the tax policy in parallel with preserving its predictability for the business structures. First of all, it includes optimization of the structure of taxes and approaches to their administration and also reducing of paperwork resulting into reducing of administrative loading on tax payers. I commission the Minister of Incomes and Fees to analyze the mentioned issues and determine the ways of introducing them in the nearest time.

At the same time, I want to assure you that irrespectively of the development of the political situation investor rights are reliably protected with the current legislation of Ukraine.

We spare no effort to guarantee to the investors protection of their rights, inviolability of business assets, favorable conditions for the development of business.

The date of the 200-th anniversary of birth of Taras Shevchenko is approaching

Yesterday a sitting of the Organization Committee on Preparation and Celebration of memory of the Great Kobzar. They considered and analyzed the state of implementation of the Action Plan.

I emphasize once again that the task of decent commemoration of this event have been determined by the President of Ukraine and the Government. All of them must be fulfilled in time and in full. So, I ask the Culture Minister to report about the course of preparation to celebration of this memorable date at the following session of the Cabinet of Ministers.

The Olympic Games in Sochi started successfully for Ukraine

The previous week a joyful event for every Ukrainian happened.

Our biathlete Vita Semerenko won bronze in the intense struggle in the sprinter race.

It is a valuable gift that instilled optimism to the millions of fans.

I believe the victory of Vita will inspire Ukrainian sportsmen to show high results in the competitions of Olympic Games of 2014.

I warrant you that our victories unite Ukrainian people irrespective of the political preferences.

The social protection of war participants is one of the important priorities of activity of the President of Ukraine and the Government.

We pay every effort to ensure this category of the citizens to feel not declarative but real support of the country.

Annually, on February 15, Ukraine celebrates the Day of Remembrance of War Participants on the territory of other countries.

In December we approved a relevant Action plan.

I commission the Minister of Social Policy to implement timely and in full all the measures envisaged by the Plan.

Changeable weather conditions create risks of emergency situations

Calendar winter is almost coming to end, but it doesn’t mean the bad winter weather won’t return. We can recall snowfalls in the end of March of 2013.

Therefore, maximal readiness must be preserved.

At the same time we must be prepared to ice drift and spring floods. We have to ready and organize in time passing of water with minimal harm for the people and the country.

Forming of ice jams can raise the water level on certain river sections. At the same time raising of water level can be caused by non-functioning drainage systems, cluttered river beds etc. 

The most dangerous during the development of spring flooding are considered the Dnipro, the Dniester, the Danube, the Pripyat, the Desna, the Siversky Donets. Mountainous rivers the Tysa, the Prut are of flooding nature.

I commission the State Water Agency, the Ministry of Infrastructure, the State Emergency Service of Ukraine, local authorities and other profile departments: to check the state hydraulic structures, ensure flawless functioning of water and sewage systems, bring into readiness equipment, people and mobilize responsible services, watch 24 hours the development of the situation aiming to forecast in advance not only the engaged services but the people as well.

The Vice Prime Minister Olexandr Vilkul is to personally supervise these issues.

And now concerning the agenda

Today the Government has to consider a lot of significant issues.

First of all, we must consider several important draft resolutions directed to solving of social issues:

- in the first place, changes into allocation and payment of state assistance to the families with children;

- order of payment compensation to low-income layers of the population in connection with an increase in the excise tax on fuel for physical persons.

We have to discuss in details the draft resolutions directed to support of aircraft industry in Ukraine, notably:

-       Concept National program of development of aviation industry of Ukraine through 2020;

-       Determining of subjects of aircraft construction to whom the measures of government support is applied.

We shall consider certain infrastructure issues:

-       Railway communication via the state border with Slovakia;

-       State Inspection bodies responsible for safety on sea and river transport.

After that we have to consider the draft law On the strategy of public-private partnership development in Ukraine directed to solving of a series of problems connected with financing of infrastructure objects in the regions in the long run.

Moreover, we will discuss an important draft decision that introduces the ways to enforce obligations of housing property developers.

I wish all the participants fruitful work. 

Let’s proceed to considering the issues of the agenda.