President of Ukraine

President has launched a system of monetization of subsidies for poor Ukrainians

6 February 2019 - 16:08

President has launched a system of monetization of subsidies for poor Ukrainians

"We have worked thoroughly since January. Right now, on February 6th, we are launching a long-awaited system of monetization of subsidies, that is, cash payments to low-income groups of population. The average payout is 1500 UAH. And after the recipient of the subsidy pays for the services consumed, cash remains at his disposal," President Petro Poroshenko said during the meeting on the introduction of the monetization of subsidies for the population held at the Ministry of Social Policy of Ukraine.

"I want to congratulate everyone, because starting from March 4, the recipients of the subsidies will receive cash. And this is a significant step in the fight against poverty," the President said and specified that this applies primarily to the poor, most of whom are pensioners.

The Head of State also stressed the need to increase the effectiveness of the mechanism of subsidies. "Does the subsidy mechanism work efficiently? On the one hand, it is effective, because everyone who is eligible for subsidies has access to them under a simplified procedure, without excessive bureaucratic delays. But on the other hand, are gas consumers, consumers of utilities, consumers of subsidies interested in reducing energy consumption today? No. Because no matter how much you consume it doesn’t affect your financial situation. That is why there is a very disturbing statistics, when consumers of subsidies consume 1.5-2 times more gas than those who pay for them with real money," Petro Poroshenko said.

The President stressed that pensioners had suffered the most as a result of the economic crisis caused by Russia's aggression and Russia's hybrid war against Ukraine.

The Head of State also noted that "the monetization of subsidies is aimed at overcoming poverty, fighting poverty, when the money saved remains at the disposal of the poor and increases their level of social protection".

At the same time, the President stressed that it was not a complete list of social initiatives in the fight against poverty. In particular, according to Petro Poroshenko, the situation with large families is being considered.

The Head of State says that the financial support of subsidies also includes the mechanism for the receipt of funds from the customs clearance of the so-called "eurobliakhs", provided that they exceed 1 billion envisaged in the state budget.

"Now this indicator was significantly exceeded and gives the President and the Government an opportunity to take appropriate steps. Therefore, I welcome the fact that today the tasks put forward were completely worked out. I thank the Prime Minister for the decisive steps that have been taken in this direction. It is very important that we have ensured a stable work of the logistics mechanism with Oschadbank and Ukrposhta," Petro Poroshenko said.

"My goal, and this is not for March, this is forever, is that subsidies stay in the form of cash so that people can save money for their own needs, so that they have a motivation to reduce energy consumption," Petro Poroshenko said.

The President thanked Prime Minister Volodymyr Groysman, Vice Prime Minister of Ukraine Hennadiy Zubko, Minister of Finance Oksana Markarova, Vice Prime Minister of Ukraine Volodymyr Kistion for the efforts of the Government in resolving this issue.