Remarks by Prime Minister of Ukraine Arseniy Yatsenyuk at a meeting of the Cabinet of Ministers of Ukraine of December 24, 2014

Respected colleagues! Media representatives who are present at the session!

Yesterday to the Parliament there was submitted a reform package that envisages reforms in tax, budget, customs, fiscal areas, deregulation, taxation of large business, change and optimization of approaches to social spending and the reforms that facilitate doing business and reduce the burden on small and medium business.

The entire package yesterday was referred to the Verkhovna Rada and the Verkhovna Rada of Ukraine took into consideration all the necessary legislative acts. I believe that the Parliament will not demonstrate politician principles but principles of statehood to the changes that are crucial for the country. With these slogans all political forces were entering the elections, and now it's time to give answers to very clear questions, what these reforms mean?

The Government has provided its vision, and this vision is the first step to make the year of 2015, at least, a year of stabilization. At most, in 2016, if we make all the necessary changes - and not just adopt the laws, as they have to be followed, in 2016, we have the prospect of economic growth. Despite the fact that 20% of the Ukrainian economy was lost. Thus, the first package of 15 laws should be adopted and only aftermath we can approve the law of Ukraine on the State Budget. Indeed, basing on a new tax, fiscal and customs legislation and social legislation there were calculated revenues and expenditures of Budget 2015.

I would like to accentuate the need to adopt a law on transfer pricing in order to prevent extra profitable large business hiding their income in offshore areas. And I wish to single out an issue of legalization of de-shadowing of various kinds of businesses which exist today, but pay both a bribe into the pockets of officials and extra profits into the pockets of the owners of this business, mention also a gambling business.

We should legalize, completely unveil the entire shadow business and that illegal business existing in the country. Therefrom, the bills submitted by the Government envisage higher responsibility, including criminal responsibility, for illegal business that exists today, which has become quite a frequent target for the Ministry of Internal Affairs. Our task now isn’t to just close the business, but all that meets international standards is to legalize, tax and the money – to direct to the budget.

Throughout the day there will take place meetings of all profile committees of the Parliament. And now the ball is in the court of the Verkhovna Rada of Ukraine. The time for indiscriminate criticism has ended, as one should first read the laws, and then express one’s position on them. Now, in essence, each article of a law, each provision of a legislative act, all members of the Ukrainian Government will participate in meetings of the relevant committees of the Verkhovna Rada. At the nearest Parliament’s session we must adopt the first package of 15 laws in the first reading. In case there is no disagreement concerning certain laws, I appeal to the Verkhovna Rada members, the committees should suggest to approve them in the first and second reading and in general.

With regard to certain innovations, we have already adopted, let me remind you that the Government has endorsed 5 packages of anti-corruption laws. Today one of such laws shall enter into force, the one which paves the way for the disclosure of information in relation to immovable property owners.

The Government has taken a decision to make another attempt to deliver humanitarian aid to the population of the territories of Donetsk and Luhansk regions. I emphasize again the situation is extremely complicated, as the Russian terrorists made hostages the people who live on the territories of Donetsk and Luhansk regions, temporarily not controlled by the Central authorities. The sooner the Minsk Protocol is fulfilled and the sooner the Russian military and the Russian terrorists leave the territory, we will be able to regain control over the respective territories and, consequently, people will not suffer, as the humanitarian catastrophe that has now occurred on the territories of Donetsk and Luhansk regions, is connected with just one thing: Russia does not implement the Minsk Protocol, we do not have an access to those areas where are operating the Russian terrorists, who should be taken away so that to provide an opportunity for the people to live a normal life.

Vice Prime Minister, Minister of Regional Development, Construction, Housing and Utilities of Ukraine Hennadii Zubko is responsible for the delivery of humanitarian assistance to Donetsk and Luhansk.  

Today we are to approve a decision to unblock values of the State material reserves, and the funds have been allotted from the State Budget to form such a humanitarian aid. Thus, we are doing our job, the people need help, there are Ukrainian citizens there.

I reiterate it is vital to fulfil the Minsk deal, there are taking place contacts of a tripartite group. Not contacts are significant, but decisions.

They let our humanitarian cargo through, implement the Minsk Protocol, get away from the Ukrainian land, and then, step by step, we will stabilize the situation, including an issue of the restoration of infrastructure of Donetsk and Luhansk, in fact.

Eur 200 million, we have inked with the European Investment Bank, and these are the funds which should be directed to restore the infrastructure of the adjacent territories to Donetsk and Luhansk regions and the territories in which the Ukrainian government have regained control in Donetsk and Luhansk. So the sooner we regain full control, the sooner we will be able to send funds there, to rebuild schools, hospitals, railway and to ensure normal life for the citizens.

Separately, I would like to mention the situation in the energy sector. You know that we have already had the state of emergency in the energy market for several months. There are several key issues related to rolling blackouts.

The first key issue is Russian terrorists who do not allow us to take about 3 million tons of coal accumulated at Ukrainian mines on the territories temporarily controlled by the terrorists. They have also destroyed a number of key junction railway points and mined them.

The second is the import of electricity from neighboring countries. If there is no electricity in Ukraine, this means that those areas where Russian terrorists temporary operate will not have electricity too. If there is electricity in Ukraine, coal is not hindered, overflows on import of electricity are signed - hence, electricity will be everywhere. It is a simple and intuitive approach.

The Government has demonopolised and fully opened market for all companies, which have Ukrainian license for imports of electricity. The situation will be more complicated than it is today. What is now saves us – it is the temperature. If temperature goes down - coal consumption will increase at once, and rolling blackouts will be massive.

To wind up with the introductory part, I would like to stress the next few days the Government will work with the Parliament on the reform package, submitted by the Government. I just remind all Parliament’s members and all coalition factions: it is a coalition Government. Each faction is represented in the incumbent Cabinet of Ministers of Ukraine. Each member of the Government, in synergy with the political forces that have formed the Government, is responsible, as is the coalition, for the future of the state. And the leaders of the political forces have no a right today to engage in populism and try to receive cheap political dividends, when it concerns vital changes for the country, it means everyone should assume responsibility.

We, as the Government of Ukraine, have assumed this responsibility. We have offered a clear plan of reforms much needed for the country. I reiterate: if the political forces possessed higher political will, the reform plan would have been far deeper and more radical, similar to those reforms in Poland, Latvia, Lithuania and Estonia. But even the first package submitted by the Government, has already caused certain political resistance. They are worried about the ranking. One should not think about the ranking, but how to facilitate the country’s development, and neither tomorrow nor the day after tomorrow, but for the years to come. The poles did that twenty years ago, thus, today it is one of the key European economies. That’s as they weren’t thinking about tomorrow. They were thinking what it would be in a year, in five.

I publicly call on all the leaders of the political coalition forces: Petro Poroshenko Block, I am to answer for the people’s Front, the Batkivshchyna party - Yulia Tymoshenko, our partners from "Mutual aid" and the Radical party formed a coalition, voted for the Action Programme for the Government, delegated members to the Government, gave promises to the people of Ukraine. Now all that's left is to fulfil. We are ready for the most vigorous activity – 24 hours a day and seven days a week.

Thanks for attention!