President Volodymyr Zelenskyy emphasizes that all Ukrainians are united by the idea of a decent and prosperous life. Thus, a strategy for Ukraine’s economic development must be presented so that there is a clear understanding of where the country is heading. The Head of State said this during the address to the Verkhovna Rada on the internal and external situation in Ukraine.
“We adopt laws that business, investors and international partners have been waiting for a long time. The objectives of my program were de-shadowing of the economy, development of domestic production, affordable lending,” Volodymyr Zelenskyy emphasized.
The President reminded that the monopoly of Ukrspirt has already been liquidated and the industry has been brought out of the shadows, in particular the first distillery has been privatized last week, and this process should be continued, which should increase budget revenues almost eightfold in the future.
In addition, a law was passed to legalize the gambling industry, and thousands of underground casinos were closed across the country.
“What existed in the shadows for years, next year, with the first licenses, should bring five billion hryvnias to the budget,” Volodymyr Zelenskyy informed. The President reminded that almost 1 thousand illegal gas stations have been closed, due to this, the official networks of gas stations have reduced fuel prices. The discount rate of the National Bank of Ukraine was reduced from 17% in April 2019 to 6%. It allowed decreasing the mortgage on housing and introducing business loans at 5-7-9%. According to the Head of State, in less than a year, SMEs have already received more than 10 billion hryvnias. In addition, the law on concessions was adopted and tenders were held for the concession of Olvia and Kherson seaports, which attracted investors from Qatar, Georgia and Switzerland.
“We started a large-scale privatization. It is important: we are talking not about strategic facilities of the state, but about hundreds of inefficient enterprises, where there was only corruption and debts. Yesterday they caused losses to the state, and today they bring billions. For example, "Dnipro" hotel,” Volodymyr Zelenskyy emphasized.
In addition, Ukraine managed to ensure energy security and signed a new 5-year contract with Gazprom for gas transit, as well as received $ 3 billion won in the Stockholm Arbitration. According to the President, from September 1, the minimum wage was increased to 5 thousand hryvnias. In January 2021, it will be 6 thousand, in July – 6500. There was also an indexation of pensions and an increase in pensions for the elderly.
“Our important promise and, without exaggeration, a historic decision is the launch of a land market in Ukraine. There was a huge opposition to this reform, manipulation and myths, the desire of politicians and individual businesses to preserve the "gray" market where during this time they stole 5 million hectares of land. We made this reform for the people. Only Ukrainians will get the right to purchase,” the President said. He added that there are restrictions on the maximum area owned by one person and preferential terms for Ukrainian farmers. Due to the decree on the transfer of agricultural land from state to communal ownership, local self-government will get more than two million hectares of land. These are funds from land use that can be used for the development and well-being of their citizens.
“It is clear that the coronavirus crisis did not make an exception for the Ukrainian economy. But all crises end. This one will end as well. And we will come out of it stronger,” the Head of State stressed. He added that the government conducted a full audit of the state. And within two weeks, it will present the results. According to the President, there is a lot of work ahead, and the priorities are clear: reducing the share of the state in the economy, developing public-private partnership, projects with a high multiplier that return investment through taxes and create new jobs, as well as withdrawn capital tax and zero declaration.
“Ukraine needs a full-fledged development strategy. Not for two, three or five years. Enough of measuring the development of Ukraine by political terms. We need a clear vision of where and why our economy should move until 2030. I know that such work was carried out by the government. Therefore, together with the results of the audit of our state, we are waiting for the presentation of economic vectors of Ukraine until 2030,” the President concluded.
