Statement by Prime Minister Denys Shmyhal at Government session

Good afternoon, distinguished colleagues, fellow Ukrainians.

For almost a week now, there have been no blackouts across Ukraine. Four months of terror, thousands of missiles and drones, billions of dollars spent by russia, but it is losing again, unable to break Ukraine on the energy front.

However, the attacks do not stop. It is too early to relax. Despite the fact that there is no shortage of electricity in the system, repairs to damaged equipment will take many months. It should be understood that in these cases, some regions will return to blackouts from time to time.

Stable passage through this heating season was one of the primary objectives set by President Volodymyr Zelenskyy for the Government of Ukraine. Another key priority for the Government was to finance all critical expenditures. In particular, social programs, healthcare and education.

In 2022 the state allocated about UAH 800 billion for social payments. In particular, UAH 575 billion was allocated for pensions. This is UAH 65 billion, or 12.5% more than in pre-war 2021. That is, in a year of full-scale war, we still managed to increase pension benefits.

In 2023, pensions for Ukrainians will be raised again. Already this March, the Government plans to index pensions by 20%. All categories defined in the Law On Compulsory State Pension Insurance will be subject to indexation.

On the order of the President of Ukraine, we are adjusting pensions despite the fact that the Law of Ukraine On the State Budget for 2023 does not require such indexation.

The Government fulfills its commitments to people. We are to support those who need it the most. The indexation of payments will cover more than 10 million Ukrainians.

In addition, this year we will keep all the supplementary payments to the old-age pension. It is the program initiated by President of Ukraine Volodymyr Zelenskyy. Retirees aged over 80 will further receive a monthly supplement of UAH 500. For pensioners aged 75-80, this supplement will be up to UAH 400 per month, and for pensioners aged 70-75 - up to UAH 300.

In total, the state plans to spend over UAH 700 billion on pensions this year. Despite the war, we find opportunities to increase payments, help and support.

Similar approach is applied to the internally displaces persons.

People who were forced to flee their homes because of the war will continue to benefit from special attention and get assistance from the Government. In 2022, we paid UAH 53.5 billion to IDPs. This year we have automatically extended such payments.

Moreover, this year, subsidy payments to the most vulnerable categories would continue in full. In February this year, the average amount of subsidies for housing and communal services in Ukraine amounted to UAH 1,684. Subsidies are paid to 2.3 million households.

At that, the Government has not raised and is notgoing to raise utility tariffs, and is helping communities to keep their tariffs unchanged.

In conditions when more than half of all budget expenditures are spent on the defense of our country, we still find resources to support those who need it most.

Social welfare programs will further improve their targeting, thus allowing to increase their financing.

Improving national security in all areas remains a priority for the Government.

At the recent Government meeting, we approved the draft law on minimum stocks of oil and petroleum products. At the current session, we are to adopt the draft law On State Reserves.

The state reserve, which has existed in Ukraine since 1991, has long remained a remnant of the Soviet-era system. Now we propose to fundamentally change approaches to its work. First, we suggest creating a state material reserve and a separate mobilization reserve. The mobilization reserve is our stockpile that will allow us to quickly deploy additional military production, repair military equipment, restore critical transport infrastructure, restore the power system, and so on.

The reserves will be formed in the following areas: food, medical, energy and technical. The main goal is to make sure that Ukraine is provided with all the essentials at any time.

Finally, we have one more critical decision concerning public procurement. After the onset of a full-scale war, certain procurements became less public due to national security issues. However, we must return to transparent procedures to minimize corruption risks.

Today, the Government will endorse a number of amendments to the document on public procurement. The list of procurement data published in the system will be expanded. We are reducing the number of cases when procurement can take place without using the electronic system. All contracts, annexes and amendments to contracts based on the results of auctions must be published in the system.

We are taking important steps towards greater transparency and openness before our society. Zero tolerance for corruption is a key principle for us, and we demonstrate this through our decisions and actions.

So, let's keep working and fighting until we completely win.

Thank you for your attention. Glory to Ukraine!