OREANDA-NEWS. July 26, 2012. The Government proposes to implement a new investment policy. This was announced by Prime Minister Mykola Azarov during a session of the Cabinet of Ministers.

Ukraine has to stimulate domestic demand at most, by all means to strengthen stability of the Ukrainian economy during the global recession.

“It is wise that we do according to the social initiatives of the President: we have increased tariff rates of wages, improved labor pension, began to increase pensions of military pension, raised pensions of disabled veterans, invalids of Chernobyl accident and invalids of production. So we will continue to operate” - PM informed. Thus he stressed that greater domestic demand should meet greater domestic supply. And investment in domestic production should be increased for this.

Last year, the Government has begun implementing several state programs to support investment and domestic production. Consequently, the amount of development capital investments in the first half of this year rose by almost a quarter. Accordingly, number of jobs increased. And the unemployment rate fell to 1.6% of the total population of working age. Number of people who were registered in the State Employment Service decreased to 80000 people in June 2012.

But this in Mykola Azarov’s opinion is not enough today. More than 60% of investments - are funds of own companies. This limits the investment potential.

"We need a real escalation in investment activity", - said Mykola Azarov. He stressed that in 2012 year the share of innovative products in the domestic production began to increase for the first time in 20 years, and this tendency should be supported and strengthened.

“Precisely for that purpose the Government offers a new investment policy: the policies that stimulate growth both investments in industry, science and agriculture, and quality of these investments” - Mykola Azarov noted.

It has been developed: a package of bills, in particular, on the promotion of investment in priority sectors of the economy, and changes to the transitional provisions of the Tax Code with respect to the features of taxation of investment projects in priority sectors. The Government is ready to go for quite radical measures, to give maximum freedom to investment activity where returns will be great, where are the high paying jobs.

Prime Minister of Ukraine Mykola Azarov charged the Ministry of Economic Development and Trade and Ministry of Finance to take into account when considering bills proposals of our leading economic experts, who in general during a meeting with the Head of the Government of July 24 were positive about this new course and made helpful advice and comments.