Opening address by the Prime Minister of Ukraine Arseniy Yatsenyuk at a session of the Cabinet of Ministers of Ukraine on June 11, 2014

Honourable members of the Cabinet of Ministers of Ukraine!

Several issues of the agenda.

The first. Yesterday the President of Ukraine appealed to the Cabinet of Ministers of Ukraine with a proposal to include amendments to the Law of Ukraine “On the State Budget”. The President rightly points out, insofar the elections were held in one round, in fact, we economize the funds planned for the presidential election campaign in the amount of up to UAH 600 million.

The Finance Ministry has readied relevant changes to the State Budget, presently we have received the final calculations of the Central Election Commission and the overall sum amounts UAH 575 million, according to the estimations. This is the amount of savings we can send to our army. That is why I would ask you to take a decision on approval of the draft Law of Ukraine “On the State Budget for 2014” and redistribution of the savings economized during the presidential elections, and direct them to the reserve fund planned for financing of the Armed Forces of Ukraine and the National Guards. 

The second item. I have just finished negotiations with Naftogaz [representatives] who are staying in Brussels now and with the Minister of Energy and Coal Industry Yurii Prodan. Russia has just declared it has shifted the term of pre-payment for the Russian natural gas and postponed cut-offs in fact.

The Russian side has issued a proposal to decrease the gas price by USD 100 with the so-called discount. I want to officially state, we know perfectly such Russian traps, the discount is introduced with a decision of the Government of the Russian Federation and is cancelled with a decision of the Government of the Russian Federation as well.  

Therefore, our position has been and still remains the same – changes to the deal. If gas is the political weapon, then it is understandable - it is the political weapon in hands of the Russian Government. If gas, as it is all around the world, is a commodity item, we trade based on the contract, but not based on whether Russia views the Ukrainian Government to their liking or not.

To say the least, we have much more questions to the Russian Government than vise versa. So, we maintain the positions we have had – to re-write the contract, to agree to the market price. The market price means not fanciful, but the market one.

We have paid the price we consider the market one, it is USD 268 per one thousand cubic meters of gas. The undisputable debt, we have calculated it worth USD 786 million, and we are ready to pay off the arrears at the relevant market price. But all these traps and hooks, that Russia wishes to suggest to Ukraine targeting to keep us again, are unacceptable, we are not going to make the same mistakes.

So, we call on Russia once again: please, let’s sign the deal and avoid bringing our case to trial. The negotiations are held in a tripartite format with our European partners. They [negotiations] have just commenced again. It is the third round already. I will inform the Government of Ukraine and Ukrainian people about the process of talks.

As of today’s morning, Ukrainian gas storages have 13.4 billion cubic meters of gas.

I would like to raise a migrant issue separately. Yesterday I gave an instruction to the staff to call to the so-called hotlines of our ministries and departments responsible for rendering assistance to the migrants. I have the complete report here. In several regions they took the receiver at once, in our Ministry of Social Policy, the telephone on the website keeps silent for some reason. Do something to make it answer or I will have to speak then.

What am I asking? Vitalii Hryhorovych [Yarema – First Vice Prime Minister of Ukraine – ed.] and Volodymyr Borysovych (Hroysman – Vice Prime Minister, Minister of Regional Development, Building, Housing and Communal Services of Ukraine – ed.], after we have received complete information, I consider we need to do the following: in fact we should approve a long-term strategy. Because all we have been doing recently was temporary accommodation for a month, two or three, in particular they were migrants from Crimean AR. Now the situation shows that this question cannot be solved in the short term.  

Regarding all these, I have a proposal to you – let’s make a single database. Immediately, a computer database enabling the people to obtain information about the region he can have temporary housing, about the region where he has an opportunity for his children to attend school, the region where he can have an opportunity to employ and what kind of work, enabling the people to get on-line and find out, if he goes to Cherkasy, there are such and such living conditions, if he goes to Lviv, there are such and such, if he goes to Kyiv, there are respectively different ones. 

It need to be done immediately, let’s attract anyone to outsourcing. And I would like You, Volodymyr Borysovych, appeal to the Association of Ukrainian Cities, Association of Small Towns, we need help of municipalities. As when we speak about power decentralization, then decentralization envisages not just obtaining certain authorities, decentralization envisages obtaining responsibility.

Based on this we, in synergy with the towns, with all of you should take the following decisions: the first – creating a single database, the second – disclosing information in every separate region, the third – attracting local municipalities to provide assistance to the migrants, the fourth – I ask on a daily basis to keep this issue under control. Vitalii Hryhorovych, the previous week You chaired a teleconference, now a huge number of people started leaving Donetsk and Luhansk, that’s why I am asking You should take personal control of this matter.

I would particularly mention the situation in Donetsk and Luhansk. There is the news: we have got from our law enforcement agencies the information that the situation in Antratzit has destabilized a bit, so today we will send to Antratzit the funds destined for social privileges and subsidies and we’ll try to deliver to the people. Arsen Borysovych, I am asking to ensure security of the transported funding. The overall sum is UAH 30 million with UAH 27 million for pensions and salaries out of this sum. The situation in the other two towns – Snizhny and Krasny Luch – has become even more critical, that we aren’t capable to control disbursement of funds, as those terrorists are again hunting for people, hunting for postmen, hunting for bankers.

To sum up, Olexandr Vitaliyovych [Shlapak – Finance Minister – ed.], in connection with the difficult situation in Snizhny and Krasny Luch, on a temporary basis until the situation is stabilized, to suspend relevant transfer and transporting of funds, as we endanger people’s lives. With regard to Antratzit, you should resume [payments] to make people feel… Snizhny and Krasny Luch to suspend.

Arsen Borysovych [Avakov – Minister of Interior- ed.], you have Torez, based on the facts I received this morning, the facts I got at 7 a.m., so You consider it needs to be done, if people’s lives are endangered, then let’s take the same decision. 

To mention Krasny Lyman, we started to pay off everything the previous week, when the National Guards had freed it from terrorists, didn’t we? So, Krasny Lyman, Antratzit plus. We are waiting for stabilization in these towns.

As a matter of fact, dear colleagues, we proceed with our agenda.

I thank the media!