Opening address by Prime Minister of Ukraine Arseniy Yatsenyuk at a meeting of the Cabinet of Ministers of Ukraine on June 4, 2014

Dear Members of the Cabinet of Ministers of Ukraine!

A number of issues that we are going to take today, first of all I would like us to discuss and make a decision as to reformation of the Ukrainian energy system, namely that of the NJSC Naftogaz Ukrainy.

I suggest the following solution – NJSC Naftogaz Ukrainy will focus exclusively on natural gas sales. We establish PJSC Ukrainian Gas Transportation System, which, according to European legislation, will deal exclusively with the transportation of natural gas, as well as PJSC Ukrainian Gas Storages Facilities, which will deal with the storage of natural gas.

In fact, it is a first real step toward full adaptation of the Ukrainian energy sector to the requirements of the Third Energy Package. We along with the EU have been conducting a common energy policy, Ukraine has ratified the Energy Charter Treaty, Ukraine is a member of the Energy Community, by the way, unlike Russia, which has not ratified the Energy Charter Treaty and which is not a member of the Energy Community. And so our joint policy with the European Union must comply with the rules set forth in the European energy market.

This significantly changes the whole system of energy security and energy policy in Europe. The faster we develop the more confident Ukraine and Europe will feel themselves in energy security issues.

Secondly, reformation of the law enforcement system. Today at the Government meeting, I ask this was done urgently, Vitalii Hryhorovych (Yarema - First Vice Prime Minister - ed.), we should create a certain working group, headed by you, on a concept for reformation of the law enforcement system.

The people are expecting real changes in the systems of the Ministry of Interior, Security Service. And, you know, I looked at the general list of the bodies carrying out law enforcement functions and enforcement, there are no more no less 23 bodies. This is just what we have found, including even the State Architectural and Building Inspection, so it also possesses enforcement functions. In such a number of law enforcement organizations we have lost at all a person in charge.

So I would ask you, Vitalii Hryhorovych, immediately head the working group with our European partners. We have discussed the fact that a support group for Ukraine will send the best European experts who enable us to conceptually change the system, which should be aimed at defending people.

Also I would like to reiterate separately that prosecutors should be deprived of general supervision. It is should be one of the key issues in our constitutional reform. We have discussed it with the newly elected President of Ukraine. I am sure that we will go along with reformation of law enforcement system as well as the system of prosecution service and courts.

Thirdly, regarding social payments. Today is the first day of social payments, yesterday we reported at the Verkhovna Rada of Ukraine on what is happening in Donetsk and Luhansk, primarily for the collection of taxes and non-tax payments. I cannot be indifferent to the situation, because these two regions have UAH 422 million arrears over the last month. But we are all paying in full all social benefits. So, I would ask Lyudmila Leontiivna (Minister of Social Policy Denisova - ed.) to report on social payments in Ukraine as a whole and separately on Donetsk and Luhansk regions.

DENISOVA L.L.: I would like to report that we have paid down almost all arrears as to the Social Insurance Fund, all social, insurance payments, including even the previous government’s debts. We have no debt. It is very important because it includes the dole as well as sick lists. For the first time I can report that we do not owe money to our citizens.

With regard to the payment of pensions, yesterday according to the schedule, we really started funding, and now people will get their pensions. As for Donetsk and Luhansk regions, according to the schedule, we have funded them, and today 83 thousand citizens of Ukraine, retirees will receive their payments in Donetsk region and 44 thousand in Luhansk region. Tomorrow, according to the schedule, we will finance assistance to families with children and for those regions too. And 326 thousand families in Donetsk region will receive such assistance as well as 164 thousand families in Luhansk region. So we have a standard situation.

But I want to note that we are unable to fund and ensure payments in three cities: Sloviansk, Kramatorsk and Antratzit. We simply cannot let our people, providing these payments, be in danger.

YATSENYUK A.P.: Lyudmila Leontiivna, we have partially transferred money to the card accounts in Oshchadbank, some money is carrying by Ukrposhta.

DENISOVA L.L.: Yes. Almost fifty-fifty.

YATSENYUK A.P.: Fifty-fifty. Sergii Ivanovych (Chebotar - Deputy Minister of Internal Affairs), what I would like to ask you, as the Minister is now on a mission, that it would not happen so we sent billions in Donetsk and Lugansk, terrorists not hunted postmen and collector cars as they had been hunting over the last month.

What is the operational situation with the money delivery to all people?

CHEBOTAR S.I.: I would like to say that these three regions, which we have mentioned, we cannot fully ensure the delivery of these funds in full. Therefore, we have proposed to make these payments in other adjacent regions, namely Dnipropetrovsk and Kharkiv regions. Why cannot we ensure the delivery of funds in these three areas? It's just unsafe.

YATSENYUK A.P.: What do you mean under “these three regions”?

CHEBOTAR S.I.: Those mentioned by Ludmila Leontiivna.

YATSENYUK A.P.: Sloviansk, Kramatorsk ... \

CHEBOTAR S.I.: Sloviansk, Kramatorsk and Antratzit.

YATSENYUK A.P.: What about the rest of the territory…

CHEBOTAR S.I.: As to other areas, there is a threat there to some extent, but we are taking measures to ensure that they coordinate with us, where we can ensure the delivery, because sometimes the delivery is being carried out and we are not even informed that the funds are delivering. It is necessary to study these issues, to coordinate our activities in order to prevent self-will, consisting in grabbing and immediately delivering money without notice. And they carry these funds, as on purpose, in order to be robbed.

We could provide reliable guard and then deliver money. I think if there is an order, we will coordinate this work and do everything to deliver this money.

YATSENYUK A.P.: A protocol instruction of the Government to the MIA, as well as I address the Security Service of Ukraine jointly with the Ministry of Social Policy and OJSC Oshchadbank and Ukrposhta to take measures to ensure payments to citizens of Ukraine, primarily to those, living in Donetsk and Luhansk regions.

I stress again that it is our people and they also want to get rid of terrorists, like the rest of Ukraine. We will fulfill our obligations to our Ukrainians, wherever they live in Donetsk, Luhansk, Lviv or Ternopil.

So I ask to take the situation under tough control, so people know that the state is taking care of them.

I thank the press!