OREANDA-NEWS. February 10, 2011. First a few words about the state of public finances.

The Government continues the policy of increase of social standards.

Thus all the social costs in 2011 fully supported with financial resources. We are raising scholarship students of vocational schools and students of higher education. In particular: students of vocational schools - to 280 UAH. Overall for the year to supplement scholarship students will be 300 UAH. - That is, comes this "a thirteenth scholarship" by analogy with the "thirteenth salary".

The increase is for all students:

- For students of Institutions higher learning I and ІІ level of accreditation stipend will increase to 560 UAH. During the year it will be an additional 600 UAH.

- For students of III and IV level of accreditation - to 742 UAH. Additive per year - 800 UAH.

There are increasing scholarships for orphans and children deprived of parental care:

- For those who studies at vocational schools - to 866 UAH.

- For students of Institutions higher learning - up to 1453 UAH. That is, per year to 1536 UAH more.

The Government continues to implement effective and prudent public debt policy. Astronomical debts accumulated by predecessors, forcing us to enter the market borrowing, excessively expensive to borrow cheap substitute predecessors.

Yes, today the average interest rate on borrowings was 7.7% - three times less than in January 2010, when it reached 22% and sometimes 30%.

We will carefully carry out their obligations to creditors of the servicing and repayment of public debt. As of February 3, YTD cost the state budget debt and state debt servicing amounted to 6.2 billion UAH. Only a few days of February we paid 2 billion UAH.

The amount the state paid for the debts of predecessors, comparable to the annual subsidies the Pension Fund and a half times larger than a grant for families with children for an entire year. In comparison with 2010 subvention to benefits and housing subsidies to pay for electricity, natural gas, heat and water supply and sanitation, rents were 5.1 billion UAH. And in January we pay debts more than 6 billion UAH.

It wasted predecessors debts hinder us to improve pensions, social benefits, wages higher rate.

That price adventurous of past Government policies. In a country debt they cast, and now taxpayers are calculated. It needs to pay more for years. So, all the chatter, that for ten months can overcome the effects of predecessors and forget about them - are meaningless. We'll have years to overcome the consequences of mindlessly populist policies.

Last Friday this year were held the first talks of the Prime Minister of Ukraine for the next IMF mission in Ukraine. I must say that we are facing a very difficult round of negotiations.

On the one hand, the mission manager said quote: "We appreciate the fact that Ukraine is the financial stability, growth trend has been seen". This rating creditor lends Ukraine billions of dollars, so the application does very clearly and responsibly. That is, quite positively, but the IMF firmly insists on strict approach to budgetary and fiscal policy.

On the other hand, we have his vision, for example, problems bringing tariffs on heat and energy to the level of market prices. And we prove that this year there is no need and economic sense in one stage, sharply increase tariffs. We insist on a phased tariff adjustments for 2011, according to the realities of the market, consisting - primarily in order to not "disrupt" the economic growth that there has been, and reduce the purchasing power of individuals. This is our top priority.

At the same time financial resources of the IMF under uncertainty of foreign markets - is all-important factor of stability of the financial situation in Ukraine. I repeat it and emphasize that all Cabinet members involved in negotiations with the IMF, should proceed with the balance of these two sides of the case.
 
Dear Colleagues.
I want special attention paid to the members of the Government those issues that determine quality of life in our country.

First of all, it is a situation on the food market. I have already said that the dire food world environment, the further the more pressure on the domestic market. The only solution here - increasing domestic production of all that is necessary for food security and price stability. At the same time we have to constantly deal with purely speculative implications on the domestic market.

February 3, 2011 signed a Memorandum of Understanding with the producers of sugar and sunflower oil, which provide stabilization of prices in these market segments of food products. As a result, we have some positive changes.

Yesterday signed a Memorandum of Understanding with the producers of grains of buckwheat, which provides fixed wholesale price for this type of grains.

Generally, this will give the opportunity to compile consumer price of buckwheat in sufficient levels. In fact, most retailers have buckwheat has declined in value.

However, this week we are faced with the absurd situation where supermarkets in the capital began to limit the number of products that can be purchased by one buyer.

You remember the distant past from which this definition: "in one hand!" Where are the organizers of this event want to turn our society?

No price increases or limiting the sale of goods such as buckwheat, cereals, pasta, oil is absolutely unjustifiable.

I repeat that we have sufficient reserves to fully eliminate these from our arsenal.

But from the Inspection of Pricing Policies, the State Tax Administration, Civil Service Consumer demand to use all the statutory authority to objectively understand the situation and take necessary measures to protect our people from unscrupulous traders.

Also today, the Government will consider the responsibility of heads of regional administrations, which allowed an unreasonable price increases in their regions.

The previous government left behind a very difficult situation and on the fuel market. Abolition of duties on imports of petroleum products in recent years led to the monopolization of the market by the importers. Their market share reached 60%. In turn, this allowed them to enter the "dictate the price" and increase the cost of fuel almost to the European level.

Government pursues a consistent policy of revival of domestic petroleum industry, including through domestic market protection from excessive imports.

Antidumping investigation launched against import of petroleum products.

At the final stage is the investigation of the Antimonopoly Committee of price collusion on the main operators of domestic oil market. If the existence of monopolistic collusion by oil traders may be imposed appropriate sanctions.

Ministry of Energy and Coal Industry of Ukraine together with domestic refiners developed a plan to stabilize the oil market by increasing oil processing to 14 million tons already this year.

And a further increase of petroleum products through modernization of the Ukrainian refineries.

Thus, the Government intends to ensure market quality and cheap fuel, which is extremely important, especially before the planting season.
 
Dear Members of the Government and citizens of Ukraine!

Another resonant theme. We are closely watching the political situation in the Arab Republic of Egypt.

As a friendly country of Egypt, Ukraine hopes to soon restore stability and public order in the country, the early solution of the Egyptian political forces in political and socio-economic problems peacefully. Ukraine is interested in pursuing a comprehensive mutually beneficial bilateral cooperation, that the interests of both countries.

I should mention that during my recent visit to Egypt in the spirit of understanding, very constructively, it was decided a number of problems removed outdated unpleasant issues for Ukraine.

I was shocked by the tragedy - say exactly which occurred in the National Museum in Cairo, when vandals destroyed priceless, unreproduced Attractions of Ancient Egyptian civilization. I sincerely hope that this tragedy - maybe the most prominent Taliban after the destruction of Buddhist shrines - teach people something in today's world, lift above the value of political stability and the primacy of culture over brute force.

Ukraine continues to make every effort to protect its nationals living in Egypt. In connection with the deteriorating political and security situation in the Arab Republic of Egypt, 31 January, the Government of Ukraine decided to evacuate the citizens of Ukraine who live in this state. This was allocated 10.9 million UAH, as they say, with a reserve.

At the request of citizens, our state provides secure their immediate return home. In the period from 25 January to 6 February 2011, in the evacuation to Kyiv free of charge been taken 419 of our compatriots who are at the consulates, that is, legally placed permanently in the Republic of Egypt.

Embassy of Ukraine in Egypt continues to register the addresses of citizens of Ukraine on the evacuation from the country and the Government will decide on the required number of flights to Egypt to evacuate our citizens.

Tourists are returned to Ukraine. As of 8 February, according to tour operators in Egypt on vacation is about 1000 of our countrymen, have departed from the country about 6000 people. According to Foreign Ministry, 13 February from Egypt to Ukraine have all the tourists return.
 
On the agenda.

Members of the Government's draft decision will be made aimed at improving the mechanism of price formation in the socially important food products:

First, set your return packaging at no higher than 10%. Indeed, as shown by analysis, at this stage "enterprising" wind the dealers price their products in 1,5 and sometimes 2 times.

Second, introduced as show producer prices and mark-ups in the original documents.

Such steps would make pricing feasible.

We also consider an action plan to improve working conditions and social protection of medical workers.

These would include the phased introduction: Payment assistance for health during annual leave; installation allowances to the official salary; payment of medical graduates of higher educational establishments of five minimum wages in case of referral to work in rural areas and so on.

The Government is forming a list of objects that are funded by grants for social and economic development.

Among the first objects: the Children's Hospital in Cherkasy region, improvement of radiological departments of oncology clinic in Kyiv region, construction of the conduit in Uman and sewerage network in the Donetsk region.

That's right - real business, government and local authorities contribute to the improvement of living standards of our citizens throughout Ukraine.

We are continuing measures to deregulate business.

Today will be considered draft resolutions of the Government, which significantly reduced the list of goods and documents which now apply holographic protective elements.

Such a step would reduce the financial burden on businesses.

In addition, the implementation of the Law of Ukraine "About licensing of certain types of economic activity"  today is approved list of services in the field of information protection.

Another important document, which envisages the introduction of economic reform program of President of Ukraine - the draft law aims to shift the financial market participants on international financial reporting standards.

This document is important, both in terms of harmonization of legislation of Ukraine to EU norms, and for the confidence of investors, especially foreign ones, the quality of data on the results of domestic business entities. In fact on the basis of the financial statements taken important management decisions.

There will be decisions made, aimed at restoring the effectiveness of the Interagency Coordinating Council for implementation in Ukraine of the Convention on evaluation of environmental impact in a transboundary context.

Continuing approval of the use of public funds.

Among the issues of international cooperation will be considered: Changes to the Agreement between Ukraine and the Republic of Bulgaria on mutual trips of citizens; draft Memorandum of Understanding between Ukraine and the United States regarding the resource gas from unconventional sources. This will allow access to the works of our American colleagues to estimate the resources of shale gas from unconventional sources in Ukraine.

Increase its production will allow us to reduce energy dependence of our country.

We also define the competent authorities for signing the Agreement between Ukraine and the Republic of Peru on military-technical cooperation.

We also plan to create a committee to prepare and celebrate the 100 anniversary of the birth of the famous designer of the rocket and space technology, the twice Hero of Socialist Labor, academician Mikhail Kuzmich Yangel.