OREANDA-NEWS. July 21, 2011. The first half of this year was one of the most difficult stages of the country out of crisis. At that time we have passed peak payment of debts of previous years, experienced an unprecedented jump in world oil prices and food prices, passed the "peak" of inflation, launched several necessary, but extremely difficult structural reforms.

We have untwisted a flywheel of transformations which not only correct failures of the last years, but also essentially change, directly say, stagnant a condition of the country which has developed for last years. Without exaggeration, such quantity and quality of transformations which have occurred from the beginning of 2011 were not for all two decades of independence.

The State Statistics Committee has promulgated the first results of work of economy in the first half-year. I shall tell about the main thing: the government policy has provided gradual restoration of economic growth. On this base incomes of the budget have grown and this allow to begin a stage-by-stage increase of salaries in budgetary area. We realize that actually, it is not enough that is not a level of acceleration of economy and not that level which we aspire, but it already a firm basis to put before the country new arrogant problems.

And the main thing from them - is stated by the President of Ukraine a task to provide higher trajectory of growth of incomes of our people, the growth leaning stable work of economy.

The tentative estimation of a GDP of Ukraine has shown growth of GDP on 4.4 %.

Growth of industrial production for January-June of current year has made about 9 %. I shall remind that it is a gain to that base which for the appropriating period of the last year has increased for 12.3 %. As well as planned, we reach on a pre-crisis level of production we overcome loss in 2009 of the fifth part of industrial potential. Particularly positive that the greatest contribution to the creation of value added given processing industry - over 10% and construction - almost 15%. Mechanical engineering increase to 21.2%, metallurgy – 10.2 %, chemical manufacture – 22.0 %.

Spurs have worked in light industry - we have growth 13.4 %.

Growth of manufacture in January-June of current year in agriculture made 3.2 %.

Undoubtedly the home market revived and become stronger. If last to year in the first half-year retail commodity circulation has increased for 2.5 % (and for that period, after 20% recessions it was major achievement) in this year the government policy on increase of consumer capacity of the population has given confident growth of commodity circulation on 15 %.

However, we should concentrate on quality and paces of economic progress. Simple restoration of economy up to parameters of pre-crisis progress will give nothing to us. Only investment and innovative acceleration and a pillar on a home market will allow raising a standard of living in Ukraine.

Therefore we should analyze critically results of work on the first half-year.

Why, for example, volumes of industrial production in the Odesa, Poltava, Kherson, Chernivtsi, Chernigiv regionss not only have grown, and were reduced in comparison with the first half-year of the last year? What does not suffice to these regions?

Detailed analysis of results of social and economic progress of the country in the first half-year 2011 and conclusions from it we shall consider at following session of the Government. I charge to the Ministry of Economic Development and Trade, the Ministry of Finance and the Ministry of Regional Development, Building and Housing of Ukraine to prepare such the analytical report and offers of the Government concerning necessary updating of economic policy which will allow eliminating regional and branch disproportions.

Now it is a high time for thorough conclusions as a development of the project of the budget for 2012 is intensively conducted, moreover in the budget of the second half-year we can make changes. The budget is our tool of stimulation of economic processes which change country. Therefore this tool should be involved on "all hundred".

Besides, it is increased of requirements to our economic analysis and forecasting and it caused by a situation in the world markets. It is uneasy and even disturbing. Both of the world issue (legal) center - the USA and the European Union are on a threshold of decisions which can have drama consequences for economic. The USA is measured to increase a national duty up to a level which exceeds a total national product of this state. EU considers versions of the unprecedented monetary help to the separate countries which in any case will change parameters of progress of the European market.

Leading economic experts warn of a possibility "falling" economic in new crisis. We have not the right to neglect such serious preventions as it was done by our predecessors.

Therefore it is necessary to prepare the country for any scripts. Today as never our policy should be weighed, cautious and at the most focused on own forces, on search of internal resources and spurs.

We should limit maximum or at all to refuse external loans and extremely cautiously to concern to granting of the state guarantees.

I want that all have understood: Ukraine has left on a good working rhythm. It is huge value for us, for people who wish to work, receive stably the decent salary and be protected, with confidence to plan a life of the family. Therefore "to not keep step with" the country we can not allow anyone.

It not is necessary for the Government. This requirement of a society - to improve a life of people where they would not live and where would not work. And the Government has to execute this requirement.

We have resources and levers to spend socially focused national economic policy.

I shall remind only two examples of it. Yesterday me and the Minister of Energy and Coal Industry Yuriy Boyko took part in start of the project of modernization of domestic gas-transport system. We spoke many years about an indispensability of such project, continually invited to participation in it of the European and Russian partners. And here finally, at support of the EBRD and the European investment bank, we have made an independent decisive step - have begun reconstruction of the third in the world on scale of gas-transport system. Modernization and reconstruction of Ukrainian GTS with own forces – these are the guaranteed hundreds workplaces, by the way, with the salary on the average 5 thousand UAH in a month. And on an output it is undoubtedly most profitable and reliable route of transportation of gas to the Europe, this competitive advantage of Ukraine in comparison with Northern and Southern streams. So, we create the factor on which should consider both the Russian suppliers, and the European consumers.

The second example is beginning of work of the first turn of the wholesale market of agricultural production in Kyiv. Still recently we about it spoke, planned, and now it operates. Hypermarkets which we shall construct across all Ukraine are thousand modern workplaces. Modern technologies of storage, logistics in these markets is a guarantee, that domestic products will fill home market, and we will import only those products which Ukraine hasn’t produced.

Consequently, such powerful investment and innovative projects can be locomotives for all economy.

Therefore I’m, as the Prime Minister, ready to shake hands personally with each owner or the director, each head of brunch that creates new workplaces with the greater salary, to each head of local authorities who creates good conditions for realization in the territory of the investment project, to each investor who has begun new business, have brought innovative technologies. By the way, I consider we should adequately and publicly to note those people who create new workplaces, introduce the advanced technologies, open new directions of economic activities. I charge to the Ministry of Economic Development and Trade and the Secretariat of the Cabinet of Ministers to make the offer concerning it.

On my belief so, instead of parades as has fairly noted the President, we should mark the 20th anniversary of Independence of Ukraine.

Preparation for celebration is on the closing stage. In the near future we shall hold a session of Coordination advice, and estimate performance of problems which were put by the President of Ukraine we shall detect problems and define ways of their decision. I charge to members of the Cabinet of Ministers to be prepared to such responsible "synchronization of watches".

Dear colleagues!

Today we have already with confidence told that Ukraine has quite good crop. Productivity early grain on the average on 20 % is more, than last year. But the actual problem of the Government and local authorities is to provide conditions for duly gathering of grain with the minimal losses and its finishing up to standard. As they say, to take from a field each ear. You see what changing weather conditions. Therefore everyone serene hour since morning till the night should be rationally used for harvesting.

More than half from 12 million hectares of early grain and leguminous cultures it is already threshed. In particular, we already have 12 million tons of wheat. The corn gives very good productivity.

Therefore two problems rise before us for today.

The first is to create the maximal stocks of grain of state, regional, and private companies.

Conversations on shortage of grain - both for a feed and for animal industries should not be.

Moreover, current marketing year should become critical on earnings of the state on export grain. We not without reason through the Agrarian fund, through the State agrarian company concluded futures contracts with peasants, reduced the price of fuel and fertilizers. Not without reason now 500 combines of the State mechanized-technological station rhythmically fill granai. The state, instead of grain traders has guaranteed to peasants performances agricultural technology and reception of profit and consequently now the state budget should receive the profit.

Simply speaking if earlier benefit from commerce in grain and from return of the export VAT received only grain traders now on the market for the first time has left the state, and in competitive competition budget will receive benefit, that is, citizens of Ukraine.

It is new resource which has created by the Government and which we plan to direct for performance of the task of the President of Ukraine - from above the forecast to raise social standards already in this year.

The second actual problem is already now completely and in the best technological timeframes to provide autumn sowing. On this subject matter on Thursday a meeting of  the Ministry of Agrarian Policy and Food takes place in Kyiv region in which I shall take part and where it is necessary to be defined, what else support to peasants in gathering and sowing of crop the Government should provide.

And today we shall continue to hear heads of regions about a course of harvesting of 2011, preparation for carrying out of autumn sowing works and progress of vegetable growing. Today on the offer of the Ministry of Agrarian Policy and Food we shall hear on this issue heads of the Vinnytsya and Lugansk regional state administrations.

And at last I wish to give three separate assignments which performance is critically necessary for our citizens.

I read information in a newspaper. Here is the newspaper "Facts" - I pay attention of the Minister of Health, and yesterday there was an appropriating plot on “Inter” Channel: "To rescue after road accident sick of a hemophilia doctors collected last ampoules of factors of coagulability of blood across all Ukraine. Now the medicine can be got only in the black market". The Government cannot passes by such messages in mass-media. And if it is the truth, official which admitted must be dismissed, Oleksandr Anischenko, differently you will pay with you position. I give you month to settle this problem.

If it is the truth or if it is not true hold a press conference and inform community.

The state has allocated necessary means, therefore your problem that anywhere there was no such situation. I shall direct commission of Control and Revision Office, representatives of Secretariat of the Cabinet of Ministers for check of a situation on seats. It is necessary to find not ordinary decision - find this not ordinary decision, connect with our trade and economic missions abroad, connect with manufacturers, but the decision should be found in the shortest timeframes.
The second. From the beginning of July the situation with the miss of motor transport on Ukrainian-Russian to border has extremely become complicated.

Turns on check points routinely reach hundreds lorries. And it is during the high season rest and seasonal commerce in products which quickly spoil. Apparently, that it creates huge inconveniences to citizens as Ukraine, and Russia.

Therefore I hope that our Russian counterparts will consider it and that if they wish to prove advantages of the Customs union they should make following advantages evident for partners, including in customs procedures.

Therefore I charge to the Chairman of the State customs service to lead immediately consultations with a management of Federal customs service of the Russian Federation for settlement of the problem. Find the decision.

Work out with the Russian side the project of the Declaration on introduction of the Early warning system about occurrence of emergencies in check points on the Russian-Ukrainian border.

Develop the program of creation and arrangement of zones of service on bypass roads to check points, as well as creations of appropriate sanitary conditions for the citizens crossing state border of Ukraine.

Also we should accelerate signing of the Agreement between the Cabinet of Ministers Ukraine and the Government of the Russian Federation about cooperation at realization of the joint control of persons, vehicles and the goods on the Russian-Ukrainian border.

I am ready to connect to this work. If it is necessary, we shall talk with a management of the Russian Federation, but it should be settled in the shortest timeframes.

The third. The National commission of regulation of the market of municipal services of Ukraine is created and begins its work. Its main task is undoubtedly to execute the assignment of the President of Ukraine concerning ordering and validities of tariff. I charge to the Ministry of Regional Development, Building and Housing of Ukraine together with the Secretariat of the Cabinet of Ministers of Ukraine immediately to solve the problem on accommodation of the commission, completion of staffs, and material support of work. I require that the commission within a month has turned out all necessary decisions for introduction of a uniform state policy in area of tariff on housing-and-municipal services and the projects we should admit during this month.