Good afternoon, dear colleagues, fellow Ukrainians.
In the fight for our state and our freedom, we make decisions every day to become stronger.
These are changes for our defence. These are changes for our economic recovery. These are changes for the digitalisation of the country. These are changes for education and healthcare. This is our movement towards the European Union.
Today we are taking another important step on our way to Europe. The Government is submitting to the European Commission a preliminary draft plan for the Ukraine Facility programme.
What is the Ukraine Facility?
It is a EUR 50 billion programme of assistance to Ukraine over the next four years, focusing on budget support.
In order to receive funds under this programme, Ukraine will have to implement a number of reforms and transformation projects.
The developments we submit consist of 4 main blocks:
The first is macroeconomic scenarios, which include building quality institutions for recovery.
The second is basic reforms, such as public administration reform, public finance management, anti-corruption and justice system reform.
The third is economic reforms. These include improving the business climate, management of state assets, human capital development and regional policy.
The fourth is the key sectors of the economy that will help Ukraine grow now and in the future. These are energy, agriculture, logistics, IT, critical materials and manufacturing.
The plan will also include three cross-cutting areas: European integration, digital transformation and green transition.
Two important points. First, the Ukraine Facility Plan is not a general strategy for the country’s economic development, but a list of conditions for receiving EU assistance.
And second, today’s developments are not the final version of the document. It is a preliminary plan to start consultations with our European colleagues. Work will continue with international partners, civil society and the Ukrainian business community.
Alongside our path to the EU, we have an ambition to become a member of the OECD. The Organisation for Economic Co-operation and Development is a “club of successful countries”, accounting for more than 62% of global GDP.
Our membership in the Organisation is a sign of readiness to join the EU and a signal to foreign companies that our country is a promising place for investment. In addition, the OECD is one of the best platforms for analysis and exchange of experience on reforms and public policies.
This summer, the OECD Programme for Ukraine was launched, paving the way for Ukraine’s accession to the organisation.
Today, the Government will approve the Action Plan for the implementation of this programme. It contains 129 points in various areas: from state regulation to the development of science and education. These are high-quality, proven state policies that will help us build a modern, efficient state.
Yesterday, the Government approved the draft State Budget for 2024 for the second reading. Despite some changes, the main priority remains the same – defence and victory of Ukraine.
We will continue to spend all the money of Ukrainian taxpayers exclusively for the security and defence forces, as well as for the production of new weapons and equipment. Based on the revised macroeconomic forecast, we expect a certain reduction in the budget deficit.
At the same time, we are keeping the social sphere, education, healthcare and economic recovery through business support as our priorities.
Today, we also have two decisions on the agenda aimed at strengthening our economic resilience.
First. We are approving a procedure that will allow new enterprises in coal-mining towns to import production equipment without paying VAT.
This applies to new enterprises established in 20 towns in Volyn, Donetsk, Luhansk and Lviv regions that meet a number of requirements to receive preferential treatment from the state.
Thanks to this tax exemption, the investor will get favourable conditions, people in these coal-mining towns will get new jobs, communities will get new opportunities, and the state will have the space to gradually reorganise unprofitable mines or mines that are being closed. This is part of a modern approach to the transformation of Ukraine’s coal regions.
The second decision aimed at supporting our economy concerns amendments to the Procedure for confirming the degree of localisation of goods production. In particular, the procedures will be changed to make it easier for new products not produced in Ukraine to obtain a confirmed degree of localisation.
These include specialised trucks, aerial work platforms, new models of buses and cars.
This will allow us to support Ukrainian producers in public procurement. Those who are currently investing in new production facilities, new lines, new developments will receive incentives from the state.
Another area that we support and which is of great economic and social importance is housing construction.
Today, the Government will extend until 2026 the state programme to provide housing for young people, which will allow hundreds of young Ukrainian families to receive preferential loans for their own homes. Thanks to this programme, more than UAH 1 billion will be invested in housing construction, which means new jobs, taxes and community development.
The programme provides for co-financing from local budgets, and communities should actively take advantage of this opportunity. We expect local authorities to be much more active, because no one should be more interested in young families living and working in their community.
Today, we will also settle the issue of using the funds so that people can start using the certificates for destroyed housing that we issue under the eVidnovlennia programme.
UAH 2.5 billion has been earmarked for compensation certificates from the Fund for Elimination of Consequences of Armed Aggression. Thousands of Ukrainians will be able to buy new homes to replace those completely destroyed by russian terrorists. We are providing fair compensation and at the same time stimulating the construction sector of our economy.
With all these steps, we are building our resilience, our recovery, our victory and success.
Step by step. For the sake of Ukraine and all Ukrainians.
Thank you for your attention. Glory to Ukraine!