Government of Ukraine Determines Steps to Back Industry Under Crisis
OREANDA-NEWS. On November 24, 2008 The Government has determined a series of top-priority steps for stabilization of functioning of the national industry under conditions of the global financial crisis. Minister of Industrial Policy of Ukraine Volodymyr Novytsky announced during the briefing in the Cabinet of Ministers of Ukraine.
Firstly, The Government is taking steps to support the level of export. With this aim trade and economic missions of Ukraine in various states have received an instruction to achieve understanding concerning eliminating of anti-dumping duties, which notably act in the USA and the EU regarding chemical industry goods.
Secondly, the Government will make all the best to reorient the industry to the internal market. On commission of the Prime Minister programs of development of internal market are being elaborated, in particular, in infrastructure sphere, “which would ensure energy, food, technological safety of the country and at the same time they can become locomotives for development of various branches, including metallurgical, chemical and machine-building”.
According to him, the Ministry of Industrial Policy together with UkrZaliznytsya have completed projects to supply with rolling-stock, there are respective projects in agrarian sector also. Together with that the Government will control the enterprises to realize their produce on the home market at the prices not exceeding the world ones.
Thirdly, the Cabinet of Ministers will use every opportunity to support national producers, not violating the WTO principles at that. “Undoubtedly, it ought to be done within the frames of those WTO rules in action today. But under conditions we have such a complicated situation with trade foreign economic balance, when the global financial crunch, which embraces Ukraine’s economy already, calls for certain firm actions in support of our own producers,” Volodymyr Novytsky explained.
The Minister of Industrial Policy also informed the Government plans to reduce an income tax, if the income is refinanced for resuming of the capital funds as well as to increase norms of depreciation for enterprises carrying out modernization. Moreover, the Cabinet of Ministers intends to up the term of non-returning currency profit under the import of machine-building produce from 180 to 360 days. At this the Minister stressed that a respective draft law would be considered within the nearest time during the Govt’s sitting.
Volodymyr Novytsky urged, that “for now the Government needs serious legislative support but unfortunately the Verkhovna Rada doesn’t fulfill their responsibilities”. The Minister also underlined under the present situation the enterprises and Ukraine’s economics in whole expect for the effective actions of the National Bank of Ukraine and commercial banks to trigger normal functioning of the banking system.
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