Opening address by the Prime Minister of Ukraine Arseniy Yatsenyuk at a session of the Cabinet of Ministers of Ukraine on August 20, 2014

Yatsenyuk A.P.: I would like to start with the situation in the economy and the financial sector.

Surely, to have an effective economy and a healthy financial sector under the current circumstances proves extremely difficult. When there is warfare in the country, which is supported by the terrorists from the Russian Federation, every day we are losing our economic potential. According to our data, the terrorists, the shots of whom are fired on the signals from Russia, are targeting the most sensitive infrastructure objects of Ukraine: mines, thermal stations, power stations, power grids, railways, bridges, communications and infrastructure". Every minute Ukraine suffers millions dollars in losses.

It is absolutely clear that these are planned actions called to stifle our economy. Russia is aware that to restore Donbas we will need not billions hryvnyas, but billions of dollars that we should find somewhere.

Hence, I would like to inform you that, despite the extremely difficult situation, we continue our cooperation with the International Monetary Fund, the World Bank and other foreign creditors. These estimate the efficiency of the ongoing economic reforms in Ukraine. So, the Government waits for this assessment to be made on August 29, during a meeting of the Board of Governors of the International Monetary Fund.

The loans are given only when they see the country carries out certain reforms and changes. If on August 29 the International Monetary Fund decides in favour of allocation of the next tranche worth $ 1.4 billion, it means that we are moving in the right direction.

I am not satisfied with the pace and depth of these reforms. However, the progress we demonstrate nowadays affords to believe in economic stabilization after peace is restored in the country. But it proves necessary to fight for peace in the modern world.

Thus we expect the decision of the Board of Governors of the International Monetary Fund and it will mean that overall, along with the World Bank’s funds, Ukraine will receive about $ 2 billion.

Regarding our work other borrowers from abroad, I’d like to note that the Ministry of Finance together with the National Bank, for the first time throughout recent six months, had placed government securities, which were directly purchased by one of the western leading financial agents.

The Finance Ministry had government securities worth 2.2 billion hryvnyas with the maturities of 2.5 years at an interest rate of 18.95%. I’ll try to explain what it means. If one of the world's largest foreign banks decided to buy government securities of Ukraine issued in hryvnyas with the maturities of 2.5 years - it means they believe in the stability of the currency market and they believe in the economic recovery of Ukraine.

I repeat that our economic development directly depends on the events in the East of Ukraine. The aggressor country, the Russian Federation, knows it well. Therefore, it is vital for us to stabilize our East.

We can also see that in Ukraine’s territory they are trying to destabilize the situation through the various attempts to launch terrorist attacks. Separately I want to evaluate the activities of the SSU, the Interior Ministry directed to localization of search and arrest of Russian mercenaries and saboteurs. Special attention should be paid by the Ministry of Interior to maintain public order on the eve of the Independence Day.

We will celebrate our independence, we are fighting for our independence, we have laid down lives for our independence, and historic words of the Ukrainian national anthem have become the reality.

Regarding other reforms much needed for the country today, the Government will adopt a decision on the complete and total demonopolization of the assessment market. During Yanukovych’s presidency a scheme was designed, in which several firms had the right to estimate and all the money flew to them only. My commission has been seeking to be approved long in the corridors of the authorities – for almost five months. They just didn't want to cancel the resolution. Today we will finally liquidate this corruption-based assessment institution.

Besides, we have taken a decision on the establishment of the State Regulatory Service of the country and there is the process of approval of the regulation on this service. What is the target? The target is to reduce bureaucracy within the country, to shorten both the number of regulatory and supervisory functions, to cut the number of officials and money guzzlers we have today, at this – to preserve the efficiency of the state machinery, which should focus on the only thing - the protection of human and civil rights. Here is why they are employed and why Ukrainians pay taxes, just to keep these services afloat.

 Today we have had a draft resolution of the Government on considerable shortening of the number of inspections and regulatory bodies. We have considered it long at the working meeting. I consider it an absolutely correct decision. Also in connection with adopting the decision on setting up the State Regulatory Service which is called to address deregulation issues and obtains the authority to cancel the acts of ministries, those not complying with the laws of Ukraine, and common sense as well, I ask that at the following meeting the Cabinet of Ministers could adopt a landmark decision on twofold reducing of inspections, supervisory and regulatory bodies.     

As to our activity in the direction of European integration, deputy ministers for European integration will be appointed this day. The Government has already set up the Office for European integration and by the end of the month the ministries shall submit the plan of implementation of the Association Agreement between Ukraine and the European Union.

Another issue, just don't forget that we have moved to another stage of a free visa regime. Today the action plan on the free visa regime is being approved in Ukraine. The principal question now is biometric passports. Namely the amount You informed me about, and it is 20 thousand per month at the first stage, I'm not satisfied, and more than that – it does not satisfy Ukrainian citizens as there will be queues of 200 thousand.

So the current action plan for us today includes how to ensure issuance of biometric passports for the Ukrainians to travel visa-free to the countries of the European Union.

And finally, we made a joint decision about the introduction of a Trade Representative of Ukraine. He is the main lawyer and attorney of the entire Ukrainian business: the lawyer - advocating business and the attorney - protecting against those countries and companies that won’t provide opportunities for Ukrainian businesses to develop and export goods abroad.

 We have thoroughly studied the experience, including of the United States, where the office of the Trade Representative is one of the key elements of foreign economic policy. Therefore, the Trade Representative of Ukraine is a key driving force for the promotion of Ukrainian goods in the world and for the protection of Ukrainian economic interest.

This is, strictly speaking, the agenda of what the Government is doing.

One more thing, I'd like us to have a meeting, Mr. Sergey, with You concerning the first [September] in schools. Alexandr Maxymovych, address this issue. In Slovyansk and other towns we are restoring schools, this morning I was reported about this matter. But, apart from Slovyansk and the East, there is the entire Ukraine. All the children must go to school, the learning process must begin. As also in the higher educational institutions. Therefore, we will have a stand-alone meeting conduct, perhaps even a public meeting.

Alexandr Maxymovych, take up the arrangement of this process. There is financing but there are unsolved problems – a teleconference with region’s heads, invite leaders of higher educational institutions in the regions just to ensure readiness to the educational process.

Thank the media.