OREANDA-NEWS. September 13, 2011. The Ukrainian government will direct its actions to strengthen the processes of import substitution.  This was stated by the First vice Prime Minister - Minister of Economic Development and Trade of Ukraine Andriy Klyuyev, commenting on the adoption of the State Program of development of internal production at the meeting of the Government.

As he said, the Program has for an object to raise economic stability of the state at the expense of development of internal production.

"We should intensify on total power processes of import substitution. Ukraine has everything you need to increase own output of products, which is now imported - this is an important natural resource, industrial, scientific, technological and labor potential. A key direction of economic policy of Ukraine is domestic market expansion," Andriy Klyuyev told.

"We will connect macroeconomic tools, efficient industrial and an agrarian policy in order to modernize production, to stimulate fast development of modern perspective technologies and technologies of the future. The introduction of Ukraine into the WTO has considerably narrowed capabilities to pursue a policy of protectionism concerning a domestic production, cooperation with the CIS countries becomes more pragmatic, the serious challenges facing the domestic producer in connection with the activation process of establishing a free trade zone with the EU too," the First vice Prime Minister has declared.

According to Andriy Klyuyev, along with the high dependence of the Ukrainian economy on imported energy negative impact on the trade balance of the country has imported machinery, equipment, machinery and vehicles, which amounted in 2010 12,7 billion USD (almost 21%) and import volume of chemical products 10,1 billion USD (almost 17%). "The Ukrainian industry has been unable to regain the lost market of electrical machinery and equipment (imports – 3,6 billion USD) and to resist the expansion of imported cars (1,7 billion USD)," Andriy Klyuyev has stated.

As he said, the raw deviation of production structure calculated mainly on requirement of export does the industry and all economy extremely dependent on a foreign market conjuncture, constrains development of home market and narrows capabilities for economic development of Ukraine.

The First vice Prime Minister has stated that the potential with import substitution is in all industries. It, as he said, concerns also engineering, including - agricultural both chemical, and light industry, production of medical products. Andriy Klyuyev has also declared that the significant potential for development is in the aviation industry and defense industry. "Also Ukraine is obliged to increase essentially provisions itself by energy carriers of own extraction for the next 10 years," the First vice Prime Minister has told.

Recall that in late July, the Prime Minister of Ukraine Mykola Azarov charged the Ministry of Economic Development and Trade of Ukraine to develop a comprehensive program of support for exports and import substitution.  And on September 12 Economic Development Ministry has made to the Government for such a program, termed the "State Program on development of internal production". The first stage of an implementation of a program is calculated for the period of 2012-2015.