Address by Prime Minister of Ukraine Denys Shmyhal at the Government session
I greet you, fellow Ukrainian citizens!
Today, Ukraine marks the National Flag Day. Tomorrow is the Independence Day and half a year of heroic struggle against the russian invaders.
Courage, sacrifice and the strength of spirit of Ukrainians are the traits we have always known we possess, and within the last 6 months the whole world can see. The Ukrainian colors has become a symbol of freedom. From Vancouver to Wellington, from Santiago to Tokyo.
Our struggle for national freedom and independence has inspired the whole world. We are united, strong and motivated to win. Despite all the difficulties and challenges, we know that we will win. After all, we know what we are fighting for. For our history, for our land, for our freedom, for our children and the future for many generations of Ukrainians.
180 days of all-out war have shown we can defeat the enemy. We have demonstrated resilience at the institutional level. We have preserved controllability of the state and all branches of government. We determined five strategic tasks for the Cabinet of Ministers of Ukraine during this period. They will further guide our work - until the final victory.
- The first and most important thing is the financing of the army and defense of our state;
- The second is the payment of all social obligations and social protection of those who need it;
- The third is macroeconomic stability and reconstruction of the economy to comply with conditions of wartime;
- The fourth is vigorous advancement in the direction of European integration;
- The fifth is the preparation of a comprehensive Ukraine Recovery Plan and the implementation of rapid reconstruction programs.
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Since the start of the full-scale invasion of russia, the state budget expenses have amounted to almost UAH 1 trillion. Of these, more than UAH 420 billion were spent on the defense and security of our country. That is, more than 40% of the resources we spent from the state budget is for the needs of the army: UAH 288 billion for salaries to the military. UAH 135 billion — for the purchase and repair of military equipment, the purchase of ammunition and defense products.
Today, Ukrainian businesses and Ukrainian citizens demonstrate better awareness than ever and, despite the difficulties, pay taxes, because they know that in such a way they help the army and the Ukrainian military. Other government expenditures are financed from assistance provided by our international allies as well as borrowing through war bonds.
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Also, together with the National Bank, we have managed to ensure macroeconomic and macro-financial stability. Ukraine did not fall into the abyss of galloping inflation. The devaluation of the hryvnia against the dollar also took place within global trends. The joint work of our team led by President Volodymyr Zelenskyy made it possible to attract more than $14 billion in external financing from Ukraine's allies. Until the end of the year, we count to receive another sum worth $12 to $16 billion.
Simultaneously, we engage in negotiations regarding a possibility of launching a new major program with the International Monetary Fund. Also, more than USD 5 billion will be saved for the budget and Ukrainian citizens thanks to the successful talks that the Government conducted with external creditors. Ukraine has postponed the repayment of foreign debts until at least 2024.
Credit, tax, regulatory incentives in combination with certain targeted assistance made it possible to maintain control over the economic front. As a result, up to now over 80% of enterprises have returned to work. The Government helped more than 600 companies relocate to safe regions, where they resumed production activities. We managed to sow last year's agricultural land by more than 80% and start harvesting. Energy and banking systems work stably.
What is on the agenda now?
• increasing exports and ‘new logistics’ (including through the Danube and new checkpoints on the western border),
• implementation of the eRobota business grant program,
• stimulation of demand for Ukrainian products,
• reduction of regulations and maximum digitization of all processes in the interaction of the state and business,
• ‘customs visa waiver’ with the EU,
• development of industrial parks,
• energy stability and ensuring the passage of the heating season,
• further reduction of non-critical expenditures of the state budget,
• privatization of state property. Regarding the latter point, we have a Government resolution to adopt today allowing to trigger the small privatization from September 1. The terms of auctions to be repeated are shortened, as well as the process of transferring property to the winner. Objects will be privatized immediately with the necessary documents. The method of determining the value is being improved, therefore providing an opportunity to ensure a fair price when bidding and speed up the process of conducting auctions. At that, the principle of transparency and openness remains key.
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The Government has met and continues to fulfill all its social obligations. Pensions were indexed. Salaries to teachers and doctors are paid in full. We pay subsidies. Tariffs for heat are frozen until the end of the heating season. More than UAH 30 billion were paid within the framework of the program to support those who lost their jobs in the first period of the war. Payments for internally displaced persons have been launched.
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The support of our international allies was manifested not only in the provision of weapons and direct financing of the budget. Ukraine received a strong political message regarding the prospect of joining the European Union. The status of a candidate for EU membership is a truly epoch-making decision.
The previous achievements representing months of preparation has allowed Ukraine to fast integrate into the EU energy space and join the European electricity network. In less than two months, the state earned UAH 2 billion from the export of electricity to Europe. And this is just the beginning. The potential is UAH 70 billion per year and more.
Since June, we have managed to get the EU to cancel all customs duties and quotas on Ukrainian exports. ‘Transport visa waiver’ has been in effect since July. We continue the implementation of European legislation and have already fulfilled about 70% of the Association Agreement with the EU.
By the end of the year, Ukraine expects the introduction of ‘customs visa waiver’. After that, it will work on industrial and digital visa-free regimes. The European integration work does not stop for a single day. And by the end of 2024 we plan to be fully prepared to join the European Union. This is our value-based and civilizational path.
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The last and no less important point of the Government's activities in these six months is the development of a systematic and detailed grand Ukraine Recovery Plan. At the beginning of July, we presented this plan in Lugano. USD 750 billion. 8 years of transformation and modernization of our economy and country. As a result, thanks to this plan, we will get a completely different quality of education, medicine, economic opportunities, energy, infrastructure and a number of other things. At the same time, this plan provides for the rapid recovery of regions, reconstruction of critical infrastructure, assistance to communities and people in the de-occupied territories.
In recent months, the Government has additionally allotted more than UAH 8 billion to support the regions. We engage in work with international partners so that they directly participate in the restoration and development of certain regions and bring their unique experiences during this reconstruction process. We have formed a clear and understandable vision of how Ukraine can become a successful and prosperous member of the European Union. And we will definitely implement this plan in full after the victory.
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180 days ago, the life of our country and every Ukrainian completely changed. The kremlin regime dreamed of capturing and destroying Ukraine. russia believed that that we had celebrated the Independence Day of Ukraine in 2021 for the last time.
But the sustainability of our state, the unity of the people, the power of Ukrainian weapons and the bravery of our army helped us not only to endure, but to become even stronger.
We will liberate our entire Ukraine. We will win, and many more generations of Ukrainians will celebrate the National Flag Day and the Independence Day in a united, strong, happy and peaceful Ukraine.
With faith in the Armed Forces and God, we continue our struggle to total victory.
Glory to Ukraine!
