Opening statement of Prime Minister of Ukraine Arseniy Yatsenyuk at the session of the Cabinet of Ministers of Ukraine on August 27, 2014

YATSENYUK A.P. - Dear members of the Cabinet of Ministers! Dear representatives of mass media!

Ukraine now faces three key challenges. The most basic is war. The second is an issue connected with war: foreign exchange rate and energy.

There were held trilateral consultations yesterday and the only country that isn’t aware that the war was unleashed directly by the Russian Federation, is Russia itself. At least such a conclusion can be drawn from the words of President Putin. Hence, the way to end war is only in one dimension: to regain control over the Ukrainian-Russian section of the border, for Russia to suspend the supply of weapons and attacks on Ukrainian territory, for the OSCE to monitor how these understandings are implemented.

The only format to reach such understandings is the U.S.A., the European Union and Ukraine, and the Russian Federation as the aggressor country - it is vital to compel it to respect international law and its international obligations.

There are no undue reliance on these meetings, but we have to pass all the way through, all the possible negotiating way to establish peace.

Concerning foreign exchange rate. Yesterday I had a meeting with the Chairman of the National Bank of Ukraine. For the Ukrainian economy the acceptable course should be at the level of 12 UAH.  What is higher is unacceptable for us to withstand. Therefore, everything the Government should do we are doing: the program with the International Monetary Fund works, laws are approved. As Head of Government I am ready to provide the National Bank comprehensive support to stabilize the situation on the currency market. As Government we don’t enter a market, we cover our needs with our own resources and I am convinced that the National Bank will have enough professionalism to stabilize the situation. Today we will have another round of consultations with the National Bank, so fast and effective solutions prove crucial for the economy of the country in order to stabilize the situation on the currency market. It is clear that this situation is also joined, first of all, with war and Russian military aggression.

I want to remind once again that on August 29 we expect a decision of the Council of Governors of the International Monetary Fund on granting another tranche of assistance to Ukraine. It will afford to Ukraine to increase foreign exchange reserves and have a comprehensive positive impact on the course.

The third problem is energy and the third challenge. Let me remind you that we have filed a claim against Russian Gazprom in Stockholm Court, requiring them to refund us USA 6 billion.

The second, Ukraine has adopted the Law “On reforming of the gas transportation system of Ukraine". And I appealed to the Chancellor of Germany and to our western partners to hold a public tender to attract foreign investors to the management of the Ukrainian gas transportation system.

The third - Naftogaz notified the Russian “Gazprom” on the need to revise the rates for the transit of Russian natural gas through the territory of Ukraine.

The fourth, we are engaged in tripartite consultations at the level of the EU, Ukraine and Russia. We have a common position between the EU and Ukraine, and Russia's actions threaten both global military security and global energy security.

We have offered a clear market approach. And there are two options. The first is to adopt a joint approach of the EU and Ukraine. The second - then it will be resolved exclusively by the Stockholm Arbitration Court. The situation is difficult in energy sector. We know about the plans of Russia: in winter to completely halt transit, even for the EU member states. And for this reason their companies were instructed to maximally pump up gas into storage facilities on the territory of Europe.

We are well aware about the plans of Russia, whose goal is to actually disconnect Ukraine from all energy resources. The Government has accumulated now in the storages 15 cubic meters of gas, I would simply remind that six months ago there were only 5 cu m in our gas storages.

We are currently working on the diversification of coal supplies, as the Russian Federation and their mercenaries are bombing and destroying mines, we extracted steam coal from. Therefore, our position is clear and invariable - approaches to energy security of the country, contained in the joint vision between Ukraine and the European Union for the Russian Federation. We expect the next round of consultations between G. Oettinger, Minister Prodan and Russian top officials. 

Our position regarding the Free Trade Area Agreement is unchanged. There cannot be any damage to the Russian economy from a free trade zone.

Yesterday Putin's assertion that the losses for Russia will make up $ 3 billion reminded me of the words of Yanukovych that he needed USD 160 billion to ratify the agreement with the EU. I understand that they had one source to get informed. To each question Russians ask, we can give two answers instead of one and confirm a complete inconsistency and absurdity of the Russian claims.

Therefore, we expect the complete round of high political consultations, which is due to be held on September 12 in Brussels, also in the trilateral format, but it has no relation to the ratification of the agreement. The agreement should be ratified in September by the current Parliament.

Today the Government is due to approve the Annual Action Programme Ukraine - NATO. The President of Ukraine will attend the NATO summit. NATO is our partner. We expect from our western partners and from the Alliance certain practical help and crucial decisions at the summit, which will take place on September4. We need help.

Moreover, this day we are to take certain additional decisions. We decided to introduce an urgent procedure of transfer of weapons and military equipment for the needs in ATO areas. Also all the equipment and weapons, being now the property of the Ministry of Defense and stored in the facilities of "Ukroboronprom", is the subject to urgent modernisation and repair. Money has been provided for that.

I consider unacceptable how the funds of the first tranche are being used, those allocated by the Government for the national security and defense. Billions of hryvnyas are accumulated. It's our duty as Government to find the money. We have found them. Only 45% have been spent. Just not mention additional UAH 9 billion, we have also accumulated and transferred.

Therefore, the security and defense department, just put things in order with application of funds and purchase of equipment.

I mention the National Guard, that manages to arm and modernize apace, and properly uses funds.

Also today, the Government will adopt a decision on the first stage of reforming state regulatory authorities. The decision is drawn very hard, as no matter which Ministry, what Minister is addressed – the answer is none should be reduced, no inspection eliminated, all badly needed.

However, the Ministry of Transport has curtailed Transport Inspection - 500 people, nothing has happened over the recent month, there is traffic, everyone is safe and sound. And the same thing is in practically every department.

Now it is perfect time for reduction, liquidation and reorganization of a number of regulatory bodies. From 1 thousand 32 controlling functions we have, in the first stage we are to cut them almost twofold, there will remain 680. Controlling central authorities, enumerating 56 now, will be reduced to 27.

Volodymyr Borysovych will now make a presentation. I am grateful to the working group, which comprised public activists and representatives of the business community. Such decisions are taken only under pressure, first of all of the society. So, even there will be arguments within the Government whether they are appropriate or not, as Head of Government I declare this decision has already been adopted and there is no way back. The first stage is reduction and reform of regulatory bodies.

So, I invite Volodymyr Borysovych to show us a presentation, your solutions, and then we proceed to the agenda.

REPORT BY HROYSMAN V.B.

YATSENYUK A.P. - Thank you, Volodymyr Borysovych.

Dear friends, I would like just to remind once again. We need this to be done immediately and without delay, to provide the new Government of Ukraine, which will be formed after the elections, with the new rules to follow in activity. And each of us [needs that] not just to show to our grandchildren record in our work-book that one was a member of the Cabinet of Ministers of Ukraine, but to tell we did a lot for our state.

Thank the media! We proceed to voting and decision-making.