UKRAINE
PROGRAMME FOR GOVERNMENT
KEY CHALLENGES FOR UKRAINETHREAT TO THE INDEPENDENCE • Russianmilitary,economicandinformationaggression• DestroyedinfrastructureandindustryinDonetskandLuhanskregions,
thelossofeconomicpotentialofCrimea• Lossofhumanlives,humanitariancrisisandagrowingnumber
ofinternallydisplacedpersons• EnergydependencefromRussia
ECONOMIC LOSSES FROM THE RUSSIAN AGGRESSION• Foreigncurrencyreservesfellunder$10billion• RapiddevaluationoftheUkrainianHryvnia• GDPfellby7%• Deficitofpublicfinancemakesup5%ofGDP,thedeficitoftheNaftogaz
ofUkraine–€5.6billion• Systemicproblemsinthebankingsector• Declineinindustrialoutput• Inflation
CORRUPTION• Badandinefficientgovernance• Corruptionincourtsandinthelawenforcementsystem• Briberyascommondailypractice
ThesovereigntyandterritorialintegrityofUkraineareourkeyvalues
Ourobjectives:toreturnCrimeaandtorebuildDonetskandLuhanskregions
TheimplementationoftheAssociationAgreementwiththeEuropeanUnionisourguidance
Onlyradicalsolutionsandactionscanpreventthecountryfromaneconomicdownslide
Thedonorsupportneededtostabilizetheeconomyandrecovergrowthrequiresspeedysystemicreforms
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THE NEW SECURITY POLICY
• Upto5%oftheGDP–tofundtheexpendituresondefenceandlawenforcement annually-Toapprovea5-yearstateprogramforArmedForcescapacitybuilding
• Torepealthe“non-block”status 2015• TointroducetheNATOstandards
-ToapprovetheAnnualNationalProgrammeofUkraine-NATOcooperation first quarter of 2015• Tobuildcapacityofthemilitaryindustry 2015 - 2018
-Anewlegislationonstatedefenceprocurement 2015-Internationalagreementsonmilitarytechnicalcooperation 2015-2016
• Toimplementthe“EuropeanRampart”project:constructionofasafeandsecureborderbetweenUkraineandRussia 2015 - 2018-Toestablishastateagencyforborderinfrastructure first quarter of 2015-ToattractfinancialassistancefromtheEUtoensurebordersecurity.AssistanceoftheEUAdvisoryMissionforCivilianSecuritySectorReform annually-ToattractUkrainiancompaniestoparticipateinthebidtoconstructborder annually
• TofulfillthecriteriaoftheVisaLiberalizationActionPlan.Tostartissuingbiometricpassports 2015• Toprovidefundingforthemilitarypersonnelandtheparticipantsintheanti-terroroperation
-TograntthespecialstatustoATOparticipants on constant basis-Tofundallsocialbenefits on constant basis-ToprovidesocialassistanceandmedicalrehabilitationthroughtheStateServiceonveteransandATOparticipants on constant basis-ToapproveaProgrammeofsocialrehabilitationandintegrationoftheATOparticipants first half of 2015-ToupgradetoanewsystemoflogisticstoprovidefortheArmy’sneedsincompliancewiththeNATOstandards first half of 2015
• Toprotectthenationalinterestsininternationalcourts.ToseekcompensationforthedamagecausedbytheRussianmilitaryaggression on constant basis
• Todraftandimplementtheconceptofinformationsecurity 2015-Tolaunchthepublicbroadcastingservice 2015-Tolaunchinternationalbroadcastingservice 2015-Toprivatizethestate-ownedprintmedia 2015
Defencesectorreformanddefencecapacitybuilding
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THE NEW GOVERNANCE POLICY
• DeregulationandreducingthenumberofareasofinteractionbetweenbusinessandGovernment-TointroduceamodelofquantityandfunctionsofregulatoryagenciesincompliancewiththeEUstandardsandwiththeAssociationAgreement-Tocutthenumberofregulatoryfunctionsfrom1032to680,andoftheregulatoryagencies-from56to28 2015Asasecondstage–tobringthenumberofregulatorybodiesandtheirfunctionsinfullcompliancewiththeEUstandards 2016-Anewlegislationonlicensingcertaineconomicactivities first quarter of 2015-Legislationontechnicalregulationsandconformityassessment first quarter of 2015-Toimplementthenewlyadoptedlegislationonmetrologyandmetrologicalactivity,andonstandardization-Toadoptover1500nationaltechnicalstandardsharmonizedwiththeEU,torepealthestandardsoftheformerUSSR 2015-Toformanelectronicdatabaseoftechnicalstandards(about28thousandstandards) 2015
• Decentralizationandcapacitybuildingoftheregions.Delegatingstatefunctionstothelocallevel-ToamendBudgetandTaxCodes(budgetdecentralization) 2014-Topassthelegislationondecentralizationinconstructionoversight first quarter of 2015-Toestablishlocal“transparentoffices”toprovideadministrativeservices 2015
• Downsizingofthepublicsectorby10%,withacorrespondingsalaryincrease 2015-2016
• Toattractnewstateemployeesonthebasisofnewrulesforopencompetitions-Toimplementthelegislationonlustration 2015-2016-Topassanewlegislationoncivilservice first quarter of 2015-Tostrengthenpersonalresponsibilityoftheofficials from 2015 on constant basis
• Introducinge-government 2015-2016-Tointroduceelectronicadministrativeservices-ElectronicIDanddigitalsignature by 2017-Toreducepaperdocumentationflows 2015 - 2016-Topassthelegislationontheunifiedsystemofelectronicinteraction 2015-Topassthelegislationonopendata 2015
De-bureaucratization,decentralization,deregulationandresponsibility
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• Implementationoftherecentlyadoptedanti-corruptionlegislation• ToestablishNationalAgencyforthePreventionofCorruptionasapreventivebody
andNationalAnti-corruptionBureauasalawenforcementagency first half of 2015• Tomonitorthelifestyleofstateofficials on constant basis• Tointroduceelectronicdeclarationofincomesandexpensesofofficials,
andtocreateaunifiedregisterofthedeclarations 2015• Toscreenthegovernmentofficialsundertheprovisionsofthelustrationlegislation by the end of 2016• Todiscloseinformationaboutbeneficiariesoflegalentitiesandinformationaboutregisteredpropertyrights 2015
• ReformingtheInteriorMinistry 2015-toimplementtheprinciple“toserveandprotect”insteadof“topunishandtocover”-newlegislationonnationalpolice-toestablishNationalInvestigationBureau
• Judiciaryreform-newlegislationonthejudicialsystemandthestatusofjudges first half of 2015-Betteraccesstojustice.Simplifiedproceduresforcivilandcommercialcases. 2015-2016
• ToinitiateamendmentsintotheConstitutiontocompletethejudiciaryreform(tointroduceathree-tiersystemofcourts,torecertifyalljudges,toeliminatejudicialimmunity,toeliminatepoliticalinfluenceontheappointment,careerandresponsibilityofjudges) 2016
• ToreturntotheSupremeCourtofUkraineitspowersasthesuperiorcourt 2016-Toamendallcodesofprocedure
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THE NEW ANTI-CORRUPTION POLICY
THE NEW LAW ENFORCEMENT SYSTEM
THE NEW JUDICIAL SYSTEM
THE NEW ECONOMIC POLICY
• Toreducepublicsectorexpendituresby10%ofGDP 2015-2016-Lawofthestatebudget-AmendmentsintotheBudgetCode
• Tocutthenumberoftaxesfrom22to9 first quarter of 2015-AmendmentsintotheTaxCode 2014-Unificationoftaxandaccountingreporting.HarmonizationwiththenormsofInternationalFinancialReportingStandards 2015-2016
• Legalizationofshadowsalariesthroughreducingsocialburdenonthepayroll-Amendmentsintothelegislationoncollectionandaccountingofthesocialcontribution(gradualreductionfrom41%to15%) first quarter of 2015-Increasedresponsibilityforpaying“envelopesalaries”(amendmentsintotheCodeonadministrativeoffencesandintotheCriminalCode) first half of 2015
• Tofightshadowcashcirculation-AdoptionofappropriateregulationsoftheNationalBanktogetherwiththeFinanceMinistry first quarter of 2015
• Toreducethetaxburdenonsmallandmediumbusiness-Toreduceby50%thesingletaxrate(amendmentsintotheTaxCode) first quarter of 2015-Towithholdallcontrollingvisitsbyregulatorybodies through 2015 – 2016
Cuttingexpenses,simplifyingandcuttingthenumberoftaxes,controlovertransferpricing,introductionofamodernandcompetitivepublicprocurementsystem
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THE NEW ECONOMIC POLICY
• Tolaunchtheconceptofataxcompromisetoensurefulldeclarationofassetsandintroducemandatorydeclarationofincome
• Controlovertransferpricing-Amendmentsintothelegislationonthetransferpricing 2016-AnewVATadministrationsystem first quarter of 2015
• Completionofthepublicprocurementreform.Introductionofe-procurement-Topasslegislationone-procurement 2015-Toimplementtheco-operationprogramwiththeIMF for duration of the program
• Demonopolizationoftheeconomy-anewlegislationonprotectingeconomiccompetition 2015-toformthenewcompositionoftheanti-monopolycommittee first half of 2015
• Capitalizationofstate-ownedbanks
• Tosupportexportsgrowthandtoprotectdomesticmarkets-FulluseoftheadvantagesofafreetraderegimewiththeEU on constant basis-TodoubletheUkrainianexports by 2019-Toconcludefreetradeagreements,whileprotectingthenationalinterests,withCanada,Turkey,Israel,theCooperationCouncilfortheArabStatesoftheGulf(GCC),theEconomicCommunityofWestAfricanStates(ECOWAS)andothercountries by 2018-ActiveengagementoftheTradeRepresentative on constant basis
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THE NEW POLICY OF STATE PROPERTY MANAGEMENT
• Tolaunchaninternationalaudit,tointroducecorporategovernanceincompliancewithOECDstandards,toappointrenownedmanagersintokeystate-ownedcompanies
-Tointroduceefficientmanagementprinciplesofstate-ownedproperty 2015
-Toattractinternationalauditingcompaniestocarryoutauditinginkeystate-ownedcompanies annually
-Toremovethebureaucratsfrommanagementofstate-ownedcompanies 2015
• Alarge-scaletransparentprivatizationofthestate-ownedpropertyunderfavourableeconomicconditions
-Toamendthelegislationonthelistofstate-ownedpropertythatareexemptfromprivatization(toexcludeover1200objects) first quarter of 2015
-Tochangethevalueappraisalmethodologyintheprivatizationpreparationprocedure 2015
-Tostartsellingsharesoninternationalstockexchanges 2016-2017
-Touseauctionsasmainprivatizationmethod,toremoveanyrestrictionsforthebidders 2016
• Tochangethemanagementsystemofstrategicallyimportantstate-ownedproperty
-Tocreateholdingcompanieswithinternationalstandardsofcorporategovernance 2016-2017
Internationalaudit,goodcorporategovernance,privatizationofstate-ownedassets
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THE NEW FOOD AND AGRICULTURE POLICY
• Topreparethereformofthelandresourcesmanagement
• Inventoryanddelineationofagriculturallandsofstate,communalandprivateproperty.Improvementofleaserelations,monetizationofrentalpayments,introductionofeffectiveregulatorymechanismstodeveloplandleasemarket-Anewlegislationonlong-termleaseofland 2015-Tocreatethedatabaseofthestatelandregister 2018
• Supportandcapacitybuildingofsmallandmedium-sizedbusinessinruralareas-Topassthelegislationonlocalagriculturalmarkets 2015-Tolaunchamicrocreditingprogramforsmallruralbusinesses 2015-2016
• Leadingpositionsinglobalmarkets,exportpromotion,openingoftheEUmarketsforUkrainianproducers,increasingthedepthofprocessingtheagriculturalrawmaterial-Creationandpromotionofanagriculturalbrand“ProductofUkraine” 2015-Developmentofportandrailroadexportinfrastructure 2015 - 2019-FulluseofagriculturalquotasontheEUmarketandseekingtheincreaseoftheirvolumes on constant basis
• Foodsecurityinwartime.Stablesowingcampaign-Anewlegislationonthestatesupportfortheagriculture.AnewrolefortheAgriculturalFund-Anewlegislationonstatereserve 2015
• Fundraisingupto$1billionfrominternationalinstitutions 2015
• EffectivesystemofcorporatemanagementoftheStateFoodandGrainCorporationofUkraineandoftheAgriculturalFund
Leadingpositionsinglobalfoodmarkets,removalofbureaucraticbarriersinmanagingtheland
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THE NEW ENERGY INDEPENDENCE POLICY
• Toattractinvestorsintomodernizationandmanagementofthenaturalgastransportationsystem-Toimplementtherecentlyadoptedlegislationonreformingthemanagementofthegastransportationsystem-Tolaunchaninternationalcompetitiontoattractinvestors 2015-ToimplementthejointprojectwiththeEBRDandtheEIBonmodernizationofthegastransportationsystem by 2020
• ToreformtheNaftogazofUkrainetomeettherequirementsoftheThirdEUEnergyPackage-ToestablishthePJSC“GasPipelinesofUkraine”,andthePJSC“UndergroundGasStoragesofUkraine” 2015-ToachievesoundfinancialstandingoftheNaftogazofUkraine 2017TointegratetheUkrainianenergysystemintotheEuropeanNetworkofTransmissionSystemOperatorsforElectricity(ENTSO-E) from 2017ToimplementtheProgramonreformingcoalindustry.Toprivatize37coalmines,toconserve24mines,toclose32unprofitablemines 2015-2019
• Toupgradetheenergyinfrastructure-Modernizationofnuclearandhydroelectricpowerplants-TocompleteconstructionofnewpowerunitsattheKhmelnytskyNPP 2020-Toconstructa110-kmDrozdovychi-Germanovychigaspipeline 2018 -ToholdnegotiationsonthepassageofLNG-tankersthroughtheBosporus 2015-TocompleteconstructionofthethirdpowerunitontheDnisterHEPP 2015-Toconstructhigh-voltage750KWpowertransmissionlines 2017-ToincreasethecapacityoutputoftheSouth-UkrainianNPPby1600MW,thatofZaporizhzhyaNPP–by700MW-andthatofKhmelnytskyandRivneNPPs-by1000MW 2016-Toconstructastoragefacilityforspentnuclearfuel first stage – 2017-ToimplementajointprogramwiththeEBRDonimprovingsafetyofnuclearpowerunits by 2017
Energyindependence.Marketbasedtariffsforenergy,subsidiesreform,diversificationofenergysupplies
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THE NEW ENERGY INDEPENDENCE POLICY
-Toextendtheoperationperiodfor9nuclearpowerunits by 2020• Diversificationofsourcesandroutesofenergysupplies(forcoal,gas,nuclearfuel):
-Toincreasedomesticproductionofhydrocarbons-ToextenddirectcontractswithEUcompaniesonthenaturalgassupplies annually-ToconstructanLNG-terminal,tobuildinterconnectors-ToexpandtheprogramofsupplyingnuclearfuelwithWestinghouseCorporation 2016 - 2017-Toprocurecoalattheinternationalmarkets-TomodernizetheelectricgeneratingcapacityofTPPs 2015-2017
• Eliminationofcross-subsidies,transitiontomarketratesforgasandelectricity.Simultaneousintroductionofcompensationmechanismsforthesociallyvulnerable 2017-Toincreasebudgetrevenuesfromenergycompanies-Tointroducetransparentandfaircompetitionrulesforthedevelopmentofnaturalresourcesthroughopenauctions first half of 2015-De-shadowingofminingoperations(coal,turf,amber) 2015-AnewCodeonnaturalresources first half of 2015
• Transitionfromjointactivitiestoproductionsharingagreementsinextractingofnaturalresources-Toamendthelegislationonproductionsharingagreements first half of 2015
• ToensureaspeedyandefficientprocedurefortheclaimagainstGazpromintheArbitrationInstituteoftheStockholmChamberofCommerceregardingconditionsofcontractsforthesupplyandtransitofnaturalgas the first half of 2016
• Tointroduceamixedmodeloftaxationintheenergysectortocomplywithinternationalstandards 2015
• Toimproveenergyefficiencythroughimplementationofalternativeenergyprojects(CleanEnergy)
• Toconstructandreconstructthehousingbynewenergyefficiencystandards(topreparenewstateconstructionnormsandenergyefficiencystandards)
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THE NEW SOCIAL POLICY
SOCIAL CHANGES• Afairpensionsystem,abolitionofspecialpensions,introductionofsinglepensionaccrualprinciple first half of 2015
-Taxationofhighpensions-Tolaunchprivatepensioninsurance,tocreateconditionstoestablishacumulativepensioninsurancesystem-Thenewlegislationoncompulsorystatepensioninsurance first half of 2015
• Eliminationofinefficientsocialbenefits.Transitiontotargetedbenefitsandtheirmonetization.Amending25relevantlegalacts 2016
• Tomergethestatesocialinsurancefundsandensuretransparencyoftheiroperations 2015-Thenewlegislationoncompulsorystatepensioninsurancetoprotectfromtemporarydisability-Thenewlegislationoncompulsorystatepensioninsurancetoprotectfromaccidentsatwork-Toreduceexpensesforfundmanagementby€30million
• Thereformoflabourlegislation-AnewLabourcode 2015
• Socialprotection,employmentandreintegrationofinternallydisplacedpersons
IMPROVING EDUCATION QUALITY• Toimplementtherecentlyadoptedlegislationonhighereducation 2016
-Newrulesofaccreditationandlicensing-Independentsystemofassessmentofhighereducationquality-Financialindependenceofhighereducationalinstitutions-Tomatchthestatefinancingofstudentswithrealneedsofthelabourmarket
• Reformofpre-school,after-school,secondary,technicalandvocationaleducationtocomplywithEUstandards-Newlegislationoneducationandonvocationaleducation first half of 2015
• Integrationofscienceandeducation,creationoftechnologicalandscientificparks,transitiontoproject-basedresearchfunding-Topassthelegislationonscientificandtechnologicalactivity first half of 2015
AbolitionoftheSovietsystemofsocialbenefits,transformationofhealthcareandeducation,growthofincomematchedwitheconomicgrowth
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THE NEW SOCIAL POLICY
THE NEW CULTURAL POLICY
THE NEW POLICY FOR YOUTH AND SPORTS
HEALTH CARE REFORM• Eliminationofcorruptionschemesinprocurementsinthehealthsystem,thetransferofthefunctionofpublic
procurementsfromtheHealthMinistrytootherstructures,includingtointernationalorganizations 2015-2016-ProcurementofvaccinesandspecialmedicinesthroughtheinternationalorganizationsoftheUnitedNationssystemandotherinternationalfunds-Directcontractswiththemanufacturersofmedicines
• Transformationandupgradeofthehospitalnetwork.Creationofaunifiedthree-tiersystem(localhospitals-regionalhospitals-nationalreferencecentres) 2017-Topassthelegislationonmedicalcareinstitutionsandonmedicalservices-Legislationonpublic-privatepartnerships
• Deregulationofthepharmaceuticalmarket,asignificantdecreaseinthenumberoflicensesandpermits 2015-2016-RecognitionoftheregistrationofmedicineslicensedintheEU,USA,Canada,Australia,Japan,withsubsequentreciprocity-Thenewlegislationonmedicines
• Topassthelegislationonthehealthinsurance 2015-2016
• ToadoptandimplementastrategyoftheUkrainianhumanitarianpolicy 2015• TosupporttheUkrainianculturalproduct.Topassthelegislationonnationalculturalproduct by 2015• Toattractnewsourcesforfinancingtheculturalsector 2015-2016
• Toadoptandimplementtheconceptofyouthpolicy 2015• Torevivethepatrioticeducation on the constant basis
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THE NEW POLICY OF INTERNATIONAL ASSISTANCE
• Toimplementco-operationandsupportprogramswiththeIMF,theWorldBank,EBRD,EIBandotherIFIs
• Toholdaninternationaldonorconferenceandtoapprovethe2015-2017internationalrecoveryplanforUkraine
• ToestablishasingleGovernmentcoordinationstructurefordonorsandinternationaltechnicalassistance
• ToattractassistancefromtheUN,theG7andtheEUtoprotectinternallydisplacedpersons,theUkrainiancitizensinDonetskandLuhanskregionsandintheCrimea,includingtheCrimeanTatars
Externalfinancialassistanceispossibleonlywithrapidanddecisiveimplementationofreforms
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TheProgrammeoftheGovernmentofUkrainewasdraftedonthebasisoftheCoalitionagreement,
whichisanintegralpartofthisProgram,anditisaimedattheimplementationoftheAssociationAgreementbetweenUkraine,ontheonehand,andtheEuropeanUnion,theEuropeanAtomicEnergyCommunity
andtheirmemberStates,ontheotherhand
December11,2014
Kyiv,Ukraine