Opening statement by Prime Minister of Ukraine at a session of the Government on April 23, 2014

At first I would like to inform once again that yesterday evening we endorsed an order with which we approved the text of an address to the IMF to obtain a loan and resume the program with the IMF directed to stabilization of the economic situation in Ukraine. The Government has made a lot with this aim and I believe by the end of the current month the IMF would consider our application and take a respective decisions.

Olexandr Vitaliyovych, has it been sent yet? Inform us, please!

Shlapak O.V.: We sent the documents late at night yesterday, Washington received them. Our mission prepared the whole necessary package and handed it over to the administration already.

Yatsenyuk A.: We will be expecting for the decision of the IMF Council. What it will be, I think, we will find out in the nearest 10 days.

Mentioning the questions which interest me as the Prime Minister, I would like that today, at the session of the Cabinet of Ministers, we approved three regulations directed to stabilization of the situation on the medicine product market.  

Mister Minister, yesterday we had a meeting. I know You are ill. Healthcare Minister must not be ill. It is good you are now at the session of the Government. Yesterday we had a large meeting with producers of drugs, importers, branch associations and, of course, with associations representing patient community.

Overall volume of the market of medical goods and means in Ukraine is USD 4.3 billion. In the present prices it amounts over UAH 50 billion. On Ukraine’s market Ukrainians spend 50 billion for purchase of medicines and various medical means.

I would ask you, Misters Ministers, and yesterday I addressed the State Customs Service.

The first issue. The law submitted by the Cabinet of Ministers concerning decreasing the VAT from 20% to 7% and introducing a single VAT rate for all has been endorsed by the Parliament. To immediately get the customs clearances for all medicines being at the customs. This is the first task.

The second. We must approve today the final version of the Governmental regulation to ensure that on the rate not equaling 20%, but 7% also the medicines will get customs clearance. So, I immediately ask to approve this regulation.

The third question concerns tenders. The Healthcare Ministry announced tenders at the total sum of UAH 2.2 billion for the purchase of medicines and medical means. Peculiar attention must be paid to the mentioned tenders by the society, Ministry of Healthcare and Ministry of Internal Affairs.

I just remind that in the previous year out of the sum UAH 2.2 billion only five companies received almost 80%. Thus, I demand in the current year there should be held transparent tenders, competition which is aimed at only one thing – the lowest prices for medicines.

With regards to the pharmacies, the position is different. The national currency rate has changed, it has grown by 20% within the recent two months, but it hasn’t changed by 60%. So, I address everyone who deals with selling medicines, with selling medical devices, with selling medical means so that to avoid the situation: “a rich man’s war and a poor man’s fight”.

If the currency rate grows by 20%, it means by 20%, but not by 120%. And yesterday we had a substantive conversation both with importers and with product marketing network representatives. I request to support this substantive talk with concrete actions of the Government. The Healthcare Ministry, you assume control, the Ministry of Economic Development and Trade through the State Inspection on Price Control – you assume control over implementation of the regulation “On the state regulation of prices for medicines”.

I advocate everyone should earn, but I oppose that under such extremely difficult conditions one tries to profit from people’s lives and people’s problems. Thus, now there is time when everyone should support another. And this support contains in honesty, openness, transparency and, at last, compassion to one to another.  

To single out the questions of realization of medicines in hospitals and medical institutions, Mister Minister (of Healthcare) I would like to address You, as it often happens that the chief physician who is also the owner of a pharmacy at the same hospital sets the price by 30-40% higher for medicines than the nearest drugstore, which is half a kilometer far from the mentioned hospital. I consider it is bad when, in fact, administrative staff use their administrative power and make business instead of treating patients.

I would like to ask You to hold the detailed inspection of all the hospitals, all medical institutions on what grounds these hospitals opened pharmacies, who are the owners of these pharmacies – as people must know in what way the prices are formed.

Moreover, Mister Minister, we have had a talk with You concerning compensation, You have a very wise word “reimbursement”, I will put it simpler, compensation for the purchased medicines. I consider we should meet with our European partners and use the European experience how to compensate to our patients the purchase of drugs. There are several programs in action in our country. It is the program concerning pressure, Mister Minister, if I am not mistaken.

Musiy O.S.: There is one program on arterial hypertension in action.

Yatsenyuk A.: Just one program. We must think how to enlarge the program – it is the first thing. The second, such enlargement of the program must take place in the framework of the general reforming of medical branch.

At the previous meeting we agreed that the Ministry would lead the process of real changes in the healthcare system, so I would ask that we endorsed three regulations today, stage by stage, in order to enable people buying cheaper and more qualitative drugs. In order to enable us tomorrow to move along the road of forming a new healthcare system in Ukraine.

I thank media people!