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Arseniy Yatsenyuk: Due to Russian military aggression Ukraine lost 20% of her economy
11.12.2014 | 11:22
Information and Communication Department of the Secretariat of the CMU

"20% of Ukrainian economy is concentrated in Luhansk and Donetsk. Due to Russian military aggression, we have lost 20% of revenues, 20% of foreign exchange earnings, 20% of our economic potential. Today the situation is even more complex than it was nine months ago, because the economic infrastructure has been destroyed, enterprises and factories have been destroyed, destroyed economy makes itself felt," Prime Minister of Ukraine Arseniy Yatsenyuk underlined, presenting the Action Program of the Government at the Parliament on Thursday, December 11.

Arseniy Yatsenyuk outlined that the Action Program of the Government is based on a number of provisions of the coalition agreement: "The Program’s core foresees our course towards European integration, and the basis for such a program - the Association Agreement between Ukraine and the European Union."

He has stressed that the Program offers a solution to three key challenges Ukraine is facing, as well as the way out of the crisis in the country: "It depends on us, how quickly and effectively we will find out and overcome this crisis."

The key threat to Ukraine today, he said, is the threat to her independence: "It is only due to Russian military aggression. Russia annexed the Crimea, sent her terrorists to Donbas, while destroying the economic potential of Ukraine. What cannot be restored is the most important. The highest value is a human life. We are losing the Ukrainians at war, waged by the Russian Federation."

Moreover, the key challenge to our independence is also energy dependence on Russia.

Arseniy Yatsenyuk said that reserves are less than USD10 billion, "And there is no reason today to say that they will increase, unless we sign a next agreement with our international creditors."

He has stressed that the Government keeps the fiscal deficit within UAH68 billion - about 4%, "In addition, we have an institution that has the higher deficit than the entire budget of the country - National Joint Stock Company Naftogaz Ukrainy. Due to the fact that the rates in the country do not meet the real market value of energy resources, this year's state budget actually gave direct subsidies to Naftogaz Ukrainy worth UAH110 billion to purchase gas and pay off with our suppliers - both European and northern neighbors."

According to him, military aggression affects all economic indicators: "We predicted a decline in GDP minus 10%. Now forecasts have slightly improved - minus 7%. But this does not affect the real improvement of the economic situation."

"The same situation with inflation, which amounts to 19%. It is tied to a number of factors, including a significant drop in foreign-exchange rate, which led to a volatility Ukrainian banking system ", Arseniy Yatsenyuk underlined and stressed the need with along the National Bank to immediately take measures to stabilize the banking system.

The third challenge, according to the PM, is corruption: "Corruption lies in the inefficient management, non-transparent public procurements, strong regulation and excessive powers of central and local authorities, lack of the effective law enforcement, prosecutorial and judicial systems to combat real corruption in the country".

"The answers to these extremely difficult challenges that the country has never experienced in all the years of her independence will be given only when the Parliament, the Government and the President along with the Ukrainian people, realizing full responsibility, carry out real changes. Nobody promised easy changes", Arseniy Yatsenyuk underlined.

First of all, reforms envisaged in the Action Program of the Government, according to the Prime Minister, are based on "the European experience, requirements and criteria set by our international partners, and what has already being done for nine months", "What has not being done during 23 years, now we have to do within 23 months."


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