The subsidy monetization scheduled for January next year is aimed to enable better targeted payments, eliminate abuses in this sector and add transparency to the welfare process. The Prime Minister of Ukraine Volodymyr Groysman said on air of one of the TV channels.

"Since January 1, we have to carry out monetization of subsidies. People will receive funding and will be able to pay for utilities using the aforesaid finance. The situation will be transparent, effective and targeted", the Head of Government said.

He added that the level of economic development would affect the amount of assistance. "The social policy that I pursue bases on the real growth of the economy, instead of borrowing", the Prime Minister explained.

Background 

In April of this year, the Government made an important step towards monetization of subsidies. It is planned that in the next heating season, subsidies will be issued in ready money, which means that their recipients can keep their savings as a result of sparing consumption. Thus, monetization will be an additional incentive for energy efficiency.

Meanwhile, Government assitance will be paid to those who really need it. Abuses in this sector will be identified and prevented. People who just disguise their bankroll won’t have access to the program and batten on the funds of taxpayers.