Open section of the session of the Government on September 17, 2014

YATSENYUK A.P.: Respected mass media representatives!

Our agenda contains several issues and I would like to start from one key point.

The Government of Ukraine is to adopt today a decision on approving of the Plan of Implementation of the Association Agreement between Ukraine and the European Union. We have set rather ambitious deadlines – by 2017 the agreement must be completely executed.

It is essential for us to adhere to the Agreement, to harmonize Ukrainian legislation with the European law, to prove that Ukraine complies with the regulations of the European Union, that we have carried out true European reforms, have made those changes called to make Ukraine a European state not in papers, but in reality. The faster we carry out these changes, the sooner the European Union see that we have actually executed the Agreement, the sooner we have a chance to apply for membership in the European Union and affirm: "We meet the criteria, we have signed the Agreement, we have implemented it. Pursuant to Article 49 of the Agreement, Ukraine can apply for membership in the European Union”.

Execution and adherence to the Agreement is of extreme significance for the Government.

As we promised, everything has been fulfilled. The political section was signed by the Prime Minister. The economic section was signed by the President. The Agreement was the previous day simultaneously ratified by the European Parliament and the Ukrainian Parliament. We clearly stated that the next day after ratification of the Agreement, the Government would take a decision on the implementation of the Agreement.

The European Union adopted a decision to grant an additional transition period to facilitate the Ukrainian economy on conditions of opening the market of the European Union for Ukrainian goods, and this, according to preliminary calculations, gives extra Eur 500 million of revenues for the Ukrainian economy per annum, while Ukraine preserves its market protected. Thus, a free trade regime with other neighbouring countries of east should remain as we have it today.

Regarding Russia. I have no single positive expectation. And we must be prepared to the situation when Russia imposes any trade restrictions. I want to publicly declare, once Russia imposes trade restrictions on Ukraine, we shall urgently, in the same day, react with a “mirror response”.

Concerning future of implementation of the Agreement, we have developed a mechanism. The mechanism was agreed with our European partners. And I’d like to thank, Mr. Jan [Tombinski – ed.], You for your personal contribution into that hard work we have done to prepare this plan of implementation, to design the mechanism; every ministry has Deputy Minister for European Integration whose responsibility includes execution of this agreement.

The Government established the Office for European Integration as a key coordinating body that should ensure the implementation of the Agreement. A new Parliament should appoint Vice-Prime Minister for European integration as, unfortunately, the incumbent Parliament is not ready to work in synergy with the Government and ensure execution of the Agreement.

Moreover, our European partners established a support group that engaged into work with our profile ministries and facilitates the technical implementation of the Agreement with the European Union.

I would like to ask head of EU delegation, Mr. Jan Tombinski to express his position regarding our joint work. How are we to work further, Mr. Jan?

JAN TOMBINSKI: Dear Mr. Prime Minister! Dear members of the Government of Ukraine! Thank you for the invitation to today's government meeting for the adoption of the action plan for the implementation of the Association Agreement.

The simultaneous ratification of the EU-Ukraine Association Agreement by the Verkhovna Rada of Ukraine and in the European Parliament was a unique historic moment. Ukrainian MPs backed the association with the EU with 355 votes in favour. The outcome of the vote significantly correlates with the votes of previous convocations of the Parliament in the past years. Therefore your choice corresponds with the well-defined political course of Ukraine.

The provisions of the AA largely coincide with the reforms demanded by the people. The main objective of the reforms is to create a better future for the people of Ukraine today and for future generations, as well as to lay the foundation for full involvement of the vast potential of your country. The slogan of Ukrainians "We are citizens" has become a trigger for the most dramatic period since Ukraine gained its independence. We bow our heads in sorrow to the victims of this period, regardless of their political beliefs, because human life is the greatest value.

In order not to deceive all those who came out in order to protect the European future of Ukraine, it is essential to prepare an appropriate strategy for the implementation of the reforms. I congratulate the Government’s action plan, which is a document in action that will need constant monitoring, which if necessary will have to be adapted. The Government’s office for European integration, mentioned by the Prime Minister, working with ministries and agencies regarding the implementation of the Association Agreement can count on the help from the EU institutions, exchange of experience ... with them, as well as with representatives of EU member states, many of which have gone through a transformational process that doesn’t differ a lot from those which faces today Ukraine. Numerous EU experts are actively working together with Ukrainian partners, support staff, experts from different countries and European institutions.

Today, there are two missions in Ukraine, the first one works on visa liberalization plan, which provides expertise on the implementation of the first phase of the visa liberalization, the second deals with financial matters: how to help and how to make possible financial assistance to Ukraine in the future during this very important time.

Later this year, the expected meeting of the Board of the Association will assess the work already done and set the direction for the next months, as you said, in accordance with provisions that are coming for this condition until 2017.

The Association is not a matter of one day. It will require hard work by a number of various Ukrainian structures, significant legislative work and adaptation of the institutional framework. As the evolutionary process the Association should be conducted in full transparency and in dialogue with different structures of the Ukrainian society. The experience of other countries that have passed the same way shows that the reforms that are relevant to the association with the EU, create opportunities and pose no threat to third countries, but provide prospects for everyone.

Successful Ukraine is also the prospect for all partners of Ukraine regarding both trade issues and stabilization policy in Europe.

The beginning of implementation of the Association Agreement occurs in exceptional circumstances, but I am convinced that this tragic period of Ukrainian and European history will end soon, and Ukraine will have a chance to strengthen its sovereignty. The vote in the European Parliament has showed very high level of support for the choice of the Ukrainian people and solidarity with it. MEPs backed it with 535 votes in favour.

And I wish the Ukrainian Government and all state institutions as well as Ukraine’s civil society successful implementation of this historic choice! And I would like to assure you of our fervent desire and willingness to support you in this great and difficult work. And this plan of events, announced today by the Prime Minister, is also the result of joint discussions and how the experience of other EU countries can help Ukraine.

Thank you very much!

YATSENYUK A.P.: I am grateful to You, Mr. Jan!

Dear members of the Government, representatives of the media! I would like to comment on a few things and to declare the position of the Cabinet of Ministers:

1. With regard to the adopted Law “On a special status of certain territories of Donetsk and Luhansk regions” and also The Amnesty Law.

2. Express our position related to yesterday’s failure in Parliament of all the economic, fiscal and budget reforms.

3. Failure of anti-corruption bills. 

4. The way the Government will execute the Law On lustration and what is the essence of the Lustration law. 

First, I’ll comment on the position concerning the adopted Law “On a special status of certain territories of Donetsk and Luhansk regions”.

We are strongly adherent to peace. Peace is much needed for the country, peace is much needed for our people. We pay too high a price in this war. What is priceless is human life. A lot of Ukrainians who went to defend and protect the state are dead today, their families were left without parents, without sons, without breadwinners. The Russian guerrillas killed many civilians. Therefore, the price is too high. Each day of the war costs UAH 80 million for Ukraine. And therefore, Ukraine needs to attain peace.

None agrees to legitimize Donetsk People's Republic and the so-called terrorists of DPR and LPR, at least it is the political position.

The Government’s position is as follows.

First. The law stipulates that the Government of Ukraine and the state are committed to finance from the state budget of Ukraine 100% expenses for recovery of certain territories of Donetsk and Luhansk regions.

In the territories we control the Government fulfils payments of all salaries, pensions, social expenditures, every copeck, despite the fact we don’t have any revenues from there.

The norm of law contains that the Government must finance the restoration of those territories of Donetsk and Luhansk regions, controlled by the Russian terrorists, and has no right to reduce the cost of recovery, even spending for other regions is reduced. I understand it as follows: I commission the Ministry of Finance to prepare a draft law on the establishment of a special fund to restore certain territories of Donetsk and Luhansk regions, which is to be filled: first, from donations and funding of Ukrainian oligarchs; second, international donor assistance and we will have such donor conference; and third, we can allocate funding from the state budget, if we regain full control over the entire territory, the enterprises commence work and pay taxes to the Central budget.

The Government won’t take away money from Lviv, Poltava, Kyiv, Zhytomyr, from pensioners of Ukraine, medical employees, educators in order to send them for recovery of territories, not-controlled by Ukraine.

The offered formula is very clear: we chip in and restore. All together. Open and fair.

Second, with regard to the so-called people's militia.

I want to publicly declare that any armed groups, namely, militia units, the national police, municipal militia, must act only to the extent and in the manner specified by laws of Ukraine. The jurisdiction of the Ukrainian legislation should apply to the entire territory of the Ukrainian state and all law enforcement officers and servants.

Third, related to the election process. The law stipulates holding the elections, local elections in certain territories of Donetsk and Luhansk regions.

Elections mean transparency of the electoral process and competition, when any political party can register their candidate on the list to be represented in local authorities, the so-called democratic elections.

Therefore, the Government has been charged to finance these elections, if the CEC announce them. I can clearly declare our position: the election will be recognized the elections only when they are conducted pursuant to the norms and rules of international law: admission of observers, the lack of pressure on members of election commissions, political competition and the right to nominate candidates suggested by MPs and political forces as well. Under other circumstances this is not an election, but the legalization of bandits we will never afford.

I want to single out that the implementation of the peace plan, which is needed and necessary, which is aimed at attaining peace in the country, should anyway keep the defense and interior ministries ready. Full readiness. No trust, especially to the Russians.

So we will see how the so-called peace initiatives are realized. Once again I would like to emphasize the position regarding the need for any negotiations on ensuring peace and stability in Ukraine in the quadripartite format - the U.S., the EU, Ukraine and Russia.

The President of Ukraine went on an official visit to Canada and the USA. Yesterday I had a telephone conversation with Vice President of the United States Joe Biden. We discussed the implementation of peace initiatives. I emphasize once again that peace is needed, but what is the price. Everything must be planned several steps ahead. Russia is surely not going to present us peace or stability. This is not their goal.

So, I ask the Minister of Defence and Minister of the Interior - full combat readiness, supplying the army, the National Guard with everything necessary, the funds are available. You need any decisions of the Government, my personal - 24 hours a day and 7 days a week.

Concerning yesterday’s voting in Parliament.

In the morning, the Government introduced a package of economic, social and budgetary reforms. There are several hundred pages.

The Parliament has refused, in other words a part of the Parliament and even some Democrats just refused to include these laws in the agenda.

Yesterday, through the behaviour of members of the Parliament of Ukraine, the Ukrainian citizens were denied a twofold reduction of single tax for small businesses, a reduction of single social tax from 41 to 15%, shortening the number of taxes from 22 to 9. The Ukrainians were denied to have a new system of payment of income tax, when it is paid not under the dictation of the tax administration, but as it is written in international accounting standards. The Ukrainian citizens were denied empowering local communities to obtain financial resources and introducing local taxes and fees. Due to yesterday’s misconduct, pre-election political hysteria of the Ukrainian Parliament, we cannot submit the Law On the State Budget. They have failed to consider a key reform package we have been preparing for three months.

Everything that has been designed for months, remained unaddressed and, first of all, it dealt a serious blow to the basis of economic development for 2015.

We will re-introduce these laws.

With regard to anti-corruption bills, it is one more unacceptable position of the Parliament. The Government has elaborated a package of anti-corruption laws, which provides for the establishment of National Anti-Corruption Bureau to investigate corruptive actions of senior officials and suggests national anti-corruption strategy that defines a completely new policy to combat corruption within the country, the bill on the disclosure of information about resident and non-resident owners of the companies doing business in Ukraine.

None of the bills was considered in the Parliament. The incumbent parliament doesn’t want to combat corruption, hence it must be re-elected, so that to remain forever in its shameful history those MPs who have voted neither for the economic, social, tax reforms nor for the anti-corruption package.

Yesterday the Parliament passed the Law On Lustration or on the purification of the authorities.  

And I would like to give clear instructions regarding the implementation of this bill. According to our calculations, 1 million of officials, public servants, law enforcement officials, including the entire Cabinet of Ministers, the Ministry of Internal Affairs, security service of Ukraine, General Prosecutor's office shall be affected under this law, the entire power vertical.

It is very important that judicial authorities and those who forged sentences should be affected under this law.

The Law On lustration applies to all employees of the law enforcement system, who sent "Berkut" soldiers against unarmed citizens. Lustration applies to all members of the central executive authorities, who worked in the period of Viktor Yanukovych. It also applies to tax authorities.

Therefore, to execute this act, I commission the Minister of the Cabinet of Ministers, together with the National civil service, National Agency for State Service, to urgently establish the Commission for the checks of incumbent members of the Cabinet of Ministers and Deputy Ministers, the heads of all the agencies of central executive authorities, who are appointed by the Cabinet of Ministers, in compliance with the Law “On Lustration".

2. The Ministry of Justice of Ukraine, according to the law, without delay to create a single state register of persons, towards whom lustration is applied.

3. The heads of central executive authorities and personally the Ministers, according to the law, to set up Commission on lustration in each Ministry.

4. The Ministry of Justice of Ukraine to urgently establish public council for lustration within the Ministry of Justice. Periodically, upon filling the single state register of persons who were affected under the lustration, to summon a public meeting of the mentioned public council and to inform citizens of Ukraine about how the Ukrainian government, Ukrainian police, the courts of Ukraine, Ukrainian law enforcement system are purified.

Thank media for attention!