Statement by Prime Minister Denys Shmyhal at a Government session

Good afternoon, dear colleagues, dear Ukrainians.

Today, Ukraine marks 78 years since its liberation from the Nazis. At that time, we had overcome the great evil that threatened the world. Now we are defeating another evil that was nurtured basing on the ideas of Nazism — russism. The ideology of hatred, invasion and genocide.

The aggressor who unleashed a bloody war will surely pay for his actions. Retribution will be inevitable and deserved. Justice will win, and Ukraine will win with it.

Grateful to everyone who brings this day closer.

This week, Ukraine has received a strong message of consistent and efficient support from our international partners.

Crucial meetings took place in Berlin within the framework of the Ukrainian-German Economic Forum and the Expert Conference on the restoration of Ukraine.

German Chancellor Olaf Scholz said: "European and German business should invest in Ukraine, because it is a future member of the EU." German business stands in solidarity with him today. I hope that all European and global businesses will join this idea.

We can see the interest of potential investors and understand their precautions. One of them is security. Therefore, the Government of Ukraine initiates a mechanism of military risk insurance for foreign investments. In particular, through the Multilateral Investment Guarantee Agency (MIGA) and the World Bank. We have allotted a $30 million resource for the pilot project. The German Federal Ministry of economy and other partners promise to join the insurance procedure.

At the conference in Berlin, a fundamental decision was made to create a Financial Coordination Platform. This is actually the financial equivalent of a security Ramstein. The Platform will operate in the format of meetings of representatives of Ukraine, the EU, G7 countries and international financial organizations. Finance ministers will jointly coordinate various aspects of financial assistance to Ukraine, will agree on sources of funding for short-term and long-term recovery plans, insurance, issues of confiscation and use of frozen russian assets.

In Berlin, I clearly emphasized the need for funding rapid recovery. These are resources for rebuilding infrastructure critical to the lives of millions of people. Including power plants and substations, power grids, heat generation facilities, water mains, public buildings, etc. In 2023, we need $17 billion for priority recovery. According to the results of the conference, there are framework agreements regarding these funds. We will work to ensure that they are transferred to Ukraine as soon as possible.

To cover the budget deficit next year, Ukraine needs $38 billion from its partners. The President of the European Commission, Ursula von der Leyen, said that the EU is working to provide Ukraine with €1.5 billion per month. We are sincerely grateful for such a position.

Ukraine expects to obtain the rest of the funds (more than $20 billion) from the United States and the IMF. There is significant progress in the said directions.

During the meeting with the head of the International Monetary Fund, Kristalina Georgieva, we reached an accord to get through all the preparatory stages as soon as possible in order to move to a new full-scale cooperation program with the Fund no later than the first quarter of 2023.

Also, today we will approve the draft Memorandum of Understanding between the Government of Ukraine and the International Finance Corporation, which is a member of the World Bank group. This memorandum will allow us to jointly identify and work on the financing of public-private partnership projects in various areas of the economy. We are talking about projects in energy, infrastructure, and other sectors. These are additional investments, opportunities for private business, new jobs and a stronger economy of Ukraine.

We also count on the technical assistance of our partners during the winter period. We must join forces to maintain electricity and heat in the homes of Ukrainians.

Regarding the heating season. A UAH 12.7 billion resource is available in the budget program for the purchase of gas for this winter. Today we will adopt a decision that Naftogaz Trading purchases gas within the framework of this budget program. Now we have more than 14 billion cubic meters of gas in storage facilities, and this would be absolutely sufficient for a stable passage of winter period. But this winter, unfortunately, will be unpredictable, and therefore it is necessary to have additional resources and reserves.

To increase our resilience to current and future challenges, we need a strong resilient economy and a functioning private sector. Amidst war and economic crisis, the state and the Government assume a key role in creating incentives for economic recovery. That is why programs of preferential lending, grant programs, development of investment nannies programs, industrial parks, deregulation and tax incentives are to be prolonged.

Today, on our agenda we have two decisions that will allow the launch of industrial parks in Ukraine in the form they have brought success in a number of countries before. Thereby we approve a procedure for providing funds for the arrangement of industrial parks and the construction of infrastructure facilities necessary for their operation. According to the terms of the procedure, the maximum amount is up to UAH 60 million and on condition that it doesn’t exceed 80% of the project. Moreover, we simultaneously adopt a procedure for providing compensation for the interest rate on loans taken for the development of an industrial park, as well as for carrying out economic activities within these parks. For the company developing the industrial park, the maximum amount of compensation will be UAH 60 million, for participants — UAH 45 million. All these funds will enable dozens of businesses across the country to intensify production and create new jobs in the near future.

Regarding incentives for the support and development of businesses we have a decision on allocation of more than UAH 320 million for the creation and expansion of new enterprises within the eRobota program. A UAH 306 million resource will be allocated in the shape of non-refundable grants for the establishment of 47 new processing enterprises. Another almost UAH 15 million is for the creation of new agricultural enterprises in the field of berry growing and horticulture.

Finally, I would like to note that today the Government approves a resolution that will allow to settle the issue of assistance and social protection of Ukrainians who were released from captivity. This applies to both military and civilians.

We are talking about first aid and provision of everything necessary, including food and communication. In addition, free psychological and medical rehabilitation, as well as initial legal assistance, will be provided. Local administrations will help with the organization of meetings with relatives, as well as in other important matters. We will help and support in every possible way.

We were fighting! We continue our battle! And we will win!

Glory to Ukraine!