Dear colleagues, fellow Ukrainians,

The Government pays significant attention to financial and social support for the development of communities and regions. This is an integral part of our sustainability.

This year, local budget resources will increase by 15% compared to 2024. We are talking about a total amount of UAH 328 billion.

The main increase will come from personal income tax revenues, as well as grants and subventions from the Government. Almost UAH 12 billion of the additional education subvention will be transferred to pay the “teacher’s supplement”. UAH 36.5 billion of additional subsidies will be allocated to support the de-occupied territories. This year, more than UAH 12 billion will be allocated for various territorial development programmes. Communities will have enough funds to finance all their most urgent needs.

In January this year, the Government has already transferred UAH 12.5 billion to local budgets. Particular attention and support is paid to the de-occupied and frontline communities. It is important that life in these communities continues. We want people to be able to live and work in their native land.

Today we have several decisions aimed at implementing this priority.

We are approving the procedure and conditions for granting a subvention to the Kharkiv city budget for emergency repair and restoration works in the housing and utilities sector. The relevant decision will allocate UAH 1 billion to Kharkiv. The funds will help the city to carry out the most urgent works related to water and heat supply, as well as sewage.

A key condition for the subvention is that the funds must be used by the end of the year. We are talking about the most important needs of the city here and now. These funds are part of our special assistance for the region.

Last year, the Government allocated UAH 2.4 billion to Kharkiv region to help it prepare for and get through the heating season. Another UAH 2 billion was allocated directly to the city of Kharkiv.

We are doing everything necessary to ensure that the city has heat, water and electricity. Just like all our other communities.

The second important decision aimed at supporting the regions is a resolution on the construction of water mains in Mykolaiv region.

russian terrorists first destroyed the Dnipro-Mykolaiv water pipeline and then blew up the Kakhovka hydroelectric power plant, thus depriving the city of access to drinking water. On the instructions of the President of Ukraine, this year the Government is allocating UAH 8 billion for the construction of water mains in Mykolaiv region. Today we are approving the procedure for using these funds.

The project involves the construction of three water intake sites from the Southern Bug River. We are making the necessary decisions to speed up the work and minimise the risk of late completion.

The task for the responsible agencies is to complete the work as soon as possible so that Mykolaiv can once again have a stable water supply.

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I would also like to thank our international partners who help finance the reconstruction and development projects of our country and support the public investment management reform.

This week, we had a productive meeting with the President of the European Bank for Reconstruction and Development, Odile Renaud-Basso. We are preparing new joint projects.

The EBRD has announced that it will invest at least EUR 1.5 billion in Ukraine and our economy this year. In particular, these are projects in the energy and transport sectors.

At the same time, we are talking to all our international partners about increasing support for the restoration of housing for Ukrainians who have lost their homes due to russian attacks.

The Council of Europe Development Bank has decided to allocate another EUR 150 million for housing programmes in Ukraine. We are grateful for this support.

This week, the Government has already allocated UAH 15 billion to compensate internally displaced persons for their homes damaged or destroyed as a result of russia’s armed aggression. More than 10,000 families will be able to receive new housing. Funding will be provided through eVidnovlennia.

In total, under the eVidnovlennia programme, people have been approved for payments for damaged property worth almost UAH 9 billion and housing certificates worth more than UAH 21 billion.

The Government has already helped more than 90,000 Ukrainian families under the eVidnovlennia programme. Restoring people’s homes is one of the key priorities of the Government this year. We are preparing further decisions in this area.

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While we direct partner assistance to Ukraine’s recovery and development programmes, almost all domestic budget resources are spent on defence and security. This year, we have a record budget for the programme of arms production and procurement. It is about at least UAH 739 billion.

We place our stake and emphasis on the purchase of Ukrainian weapons. We are investing state resources in this and supporting the private sector.

One of the key requests in this area from defence companies is the introduction of long-term contracts for the production of weapons and ammunition. The Ministry of Defence, the Ministry of Finance and the Ministry of Strategic Industries have been instructed to work on this issue.

The first three-year contracts were signed last year. This year, the goal is to make three- and five-year contracts the norm for arms and military equipment manufacturers.

This is one of the Government’s incentives that will allow manufacturers to increase investment in production and help Ukraine build the most powerful and modern defence industry in Europe.

I thank everyone who produces weapons to defend Ukraine.

I thank all our soldiers who defend our country on the frontline.

Thank you for your attention.

Glory to Ukraine!