Statement by Prime Minister of Ukraine Denys Shmyhal at Government session

Dear colleagues! Fellow Ukrainians!

We are starting the first Government meeting of 2024.

On the eve of and in the first days of the new year, Ukraine was subjected to brutal attacks by the terrorist state of the russian federation. Only yesterday, the enemy launched 135 munitions: shaheds, kinzhals, calibers, cruise missiles and other types of missiles.

I am grateful to the air defence forces who destroyed most of the air targets. I am grateful to Ukrainian rescuers, police officers and medics who are helping people in our towns and villages.

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Ukraine’s energy sector is once again passing the test of strength. Although the latest attack damaged power facilities in Kyiv region, the damage is not critical. The power system remains balanced, there is no power shortage and no scheduled outages are being applied. Electricity supply in Kyiv region has been restored to all households.

Unfortunately, the latest attacks by russian terrorists have not been without casualties. Hundreds of Ukrainians have been left homeless.

We will make every effort to ensure that those affected are able to repair their homes and, if necessary, buy new ones. We have effective tools for this. In particular, the eVidnovlennia programme.

Last year, the state paid UAH 2.2 billion to citizens for housing repairs. Now it is possible to use housing certificates to buy a property. This is an option for people whose homes have been completely destroyed.

This year, Ukrainians will also be able to receive funds for repairs they have already carried out.

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russia must pay for everything. In particular, the aggressor must compensate for the damage caused.

Therefore, one of the key tasks in 2024 will be to direct russian assets frozen in the West to Ukraine’s recovery.

The United States, the European Union and other countries are close to solving this problem.

There are already precedents for legislative changes that provide mechanisms for the transfer of funds. It is now important to bring this into a single, clear system involving the EU and G7 countries.

Together with our diplomats, we are constantly working on this issue. We expect positive results this year.

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The confiscation of russian assets is a strengthening of our resilience. It is also a possible source of funding for key budget priorities.

On 1 January, a number of social standards were updated in Ukraine.

The minimum wage increased by 6% from UAH 6,700 to UAH 7,100. A further increase is planned for the spring.

The subsistence minimum has risen by an average of 12% to UAH 2,920.

The minimum pension in Ukraine has increased from UAH 2,093 to UAH 2,361. The Government plans to index pensions from 1 March.

Last year the state demonstrated exemplary fulfilment of social obligations. In the structure of consolidated budget expenditures, social payments accounted for more than 12%.

This year, this will also be one of our priorities. We will pay pensions and benefits on time. We have internal resources and support from our partners.

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I am extremely grateful to all states and international organisations that have helped and will continue to help Ukraine.

USD 42.6 billion of external financing was attracted in 2023. Of these, 27% are grants. The leaders of support remain unchanged: the European Union, the United States, the IMF, Japan, Canada, the United Kingdom, and the World Bank.

The needs for this year are over USD 37 billion. We count on rhythmic, stable and timely assistance from our partners.

At the same time, we are steadily increasing our own budget revenues, primarily customs and tax revenues. Last year, the general fund of the state budget received more than UAH 1.1 trillion in taxes, duties and other payments.

We are allocating all these funds for security and defence. This year, we plan to spend more than UAH 750 billion on payments to the military. More than UAH 265 billion will be spent on the purchase, production and repair of weapons.

The key task here is to increase our own military production. The production capacity of the Ukrainian defence industry tripled in 2023. The ambitious goal for this year is to increase sixfold.

This means more drones, more shells, more ammunition and armoured vehicles for our military.

So we are entering the new year of 2024 with renewed vigour. We are confident in our own capabilities and in the solidarity of our allies, ready for new challenges and firmly believe in our victory.

Thank you for your attention! Glory to Ukraine!