AGENDA OF THE CABINET OF MINISTERS OF UKRAINE

AGENDA OF THE CABINET OF MINISTERS OF UKRAINE
December 12, 2014.

INTRODUCTION

 Agenda of the Cabinet of Ministers of Ukraine is set forth according of the Constitution of Ukraine, Law of Ukraine “On the Cabinet of Ministers of Ukraine”, in pursuit of the Association Agreement between Ukraine, from one side, and the EU, European Nuclear Energy Agency and other member states, from the other side, taking in consideration the Coalition Agreement provisions.

 PRINCIPAL GOALS

OF THE CABINET OF MINISTERS OF UKRAINE

 1. New defense policy of safeguarding national security and defense capacity of Ukraine and restoration of the national sovereignty over the entire territory of the state:

Approval and implementation of the State Armed Forces Development Program till 2020;

up to 5% of the GDP – expenses for the defense and law enforcement (annually):

  • drafting and facilitating the approval of the Law of Ukraine on the State Budget with the appropriate scope of expenses (annually);
  • drafting and facilitating the approval of the new edition of the Law of Ukraine on the state defense contract  (2015);
  • conclusion of international treaties on technical cooperation in the production of military equipment, weapons, non-lethal weapons and operational gear with NATO member states (2015-2016);
  • development of defense industry complex, deployment  of weapons, military and special vehicles production in cooperation with leading world manufacturers, production of military vehicles compatible with NATO standards (2015 – 2018);

Withdrawal from non-aligned status facilitation of approving the new edition of the Law of Ukraine on the fundamentals of domestic and foreign policy (2015);

Implementation of NATO standards in the Armed Forces:

  • drafting and facilitating the approval of the first annual national program of cooperation between Ukraine and the NATO (first quarter of 2015 with annual renewal);
  • transfer to the new system of the Armed Forces logistics support according to the NATO standards (first semester of 2015);

Implementation of the European Wall Project: construction and reinforcement of border fortifications between Ukraine and the Russian Federation (2015 – 2018):

  • establishment of the State Border Infrastructure Development Agency (first quarter of 2015);
  • taking actions to obtain financial aid from the EU for ensuring state border infrastructure development (annually);
  • taking actions to obtain the aid from the EU Advisory Mission  in Ukraine of safety sector reform (annually);
  • engagement of domestic companies to border reinforcement (annually);

Compliance with the eligibility criteria for visa-free regime with the EU, including the issue of biometrical passports compliant to the EU requirements (2015);

Social support of servicemen and other ATO participants:

  • issue of ATO participant certificates (until all ATO participants receive such certificates АТО);
  • finding of social benefits for ATO participants (continuously);
  • providing social aid and medical rehabilitation services through the State Service of Veterans and ATO Participants (continuously)
  • approval of the Program of Social Rehabilitation and Adaptation of the ATO Participants  (first semester of 2015);

Protection of national interests in the international courts, ensuring restitution of losses caused by the Russian Federation military aggression (continuously);

Development and implementation of the Ukrainian informational safety concept (2015);

Establishment of social broadcasting:

  • launch of foreign broadcasting (2015);
  • denationalization of the media (2015 ).2. New state management policy:

Deregulation and decreasing the number of linkages between the state and the business:

  • implementation of a regulatory model stipulating the number and functions of controlling bodies according to the EU standards and Association Agreement between Ukraine, from one side, and the EU, European Nuclear Energy Agency and other member states, from the other side (2015 – 2016);
  • decreasing the redundant controlling bodies from 56 to 28, their functions – from 1032 to 680  (first semester of 2015), adjusting the number and functions of controlling bodies to full compliance with the European standards  (2016 );
  • facilitating the approval of the new edition of the Law of Ukraine “On licensing of certain commercial activities” (first quarter of 2015);
  • facilitating the approval of the new edition of the Law of Ukraine “On technical regulations and compliance assessment procedures”(first quarter of 2015 );
  • implementation of the laws of Ukraine ‘On metrology and metrological activities” and “On standardization” approved in 2014;
  • adoption of 1500 national standards harmonized with the EU standards, discontinuation of the former USSR standards on the territory of Ukraine (2015);
  • creation of a full-test electronic database of standards (about 28 thousand of standards) (2015);

Decentralization and regional development, cascading the operational and management functions to the local level to the maximum possible extent:

  • development and facilitation of the approval of amendments to the Budget and Tax Code of Ukraine with regard to transfer to the local self-governance bodies of additional budgeting powers and sustainable sources of income for their implementation (first quarter of 2015);
  • development and facilitation of the approval of the Law on decentralization of powers in architecture and construction control (first quarter of 2015);
  • opening local “Transparent Offices” (2015);

Downsizing the number of civil servants by 10%, appropriate salary increase (2015 -2016);

Overhaul of state authorities’ human resources:

  • ensuring fulfillment of the Law of Ukraine “On purification of government”  (till 2016);
  • drafting and facilitating the approval of the new edition of the Law of Ukraine “On the civil service” (first quarter of 2015);
  • competitive selection based on the new principles (starting from 2015);
  • introduction of personal liability of the state officials  (starting from 2015);

E-government introduction (2015 – 2016):

  • introduction of electronic non-contact services (2015 – 2016);
  • electronic identification and electronic signature of the citizen (till 2017);
  • refusal from paper documents management (2015 – 2016);
  • drafting and facilitating the approval of the Law on uniform electronic interaction system (2015);
  • drafting and facilitating the approval of the Law on the open data (2015).

3. New anti-corruption policy:

Combating corruption and purification of the government:

  • implementation of anti-corruption laws;
  • creation of the National Anti-Corruption agency as a preventive body and National Anti-Corruption Bureau as a law enforcement entity (first semester of 2015);
  • state officials lifestyle monitoring (continuously);
  • establishment of the Uniform Electronic Register of State Officials Property, Incomes Expenditures and Financial Liabilities Declarations (2015);
  • scrutinizing of state officials subject to the Law of Ukraine “On purification of government” (till the end of 2016);
  • disclosure of information about final beneficiaries of legal entities and registered real estate rights (real estate registers) (2015);

New law enforcement policy:

  • Reform of the Ministry of Interior (2015):
    • drafting and approval of the Concept of priority activities in reforming the Ministry of Interior: implementation of the «Serve and protect» principle rather than «Punish and cover up»;
    • drafting and facilitating the approval of the new edition of the Law on national police;
    • establishment of the National Investigation Bureau;

New system of justice:

  • establishment of legal fundamentals for reforming the judiciary system by facilitating the approval of new edition of the Law of Ukraine “On the Judiciary and Status of Judges” (first semester of 2015);
  • ensuring access to the justice:
    • simplified procedure for civil and criminal cases (2015-2016);
  • initiation of amendments to the Constitution of Ukraine on finalizing the court reform (implementation of three-tier system of courts, cancellation of judges’ immunity, re-assessment of all judges, elimination of political influence over the selection process, renovation of the judiciary system and judicial corps) (2016);
  • restoring the powers of the Supreme Court of Ukraine as the highest judicial instance (amendments to all procedural codes) (2016).

4. New economic policy:

Reduction of state sector expenditures share in the gross domestic product structure by 10% (2015 – 2016):

  • drafting and facilitating the approval of the Law on State Budget of Ukraine taking into account the respective modifications of the expenditures part;
  • drafting and facilitating the approval of amendments to the Budget Code of Ukraine;

Decreasing the number of taxes from 22 to 9 (first quarter of 2015);

Integration of tax and financial reporting, its harmonization with the International Financial Reporting Standards (2015 – 2016);

Clearance of salaries by decreasing the burden on the salary fund:

Drafting and facilitating the approval of amendments to the Law of Ukraine “On collection and accounting of the single state social insurance contribution” (staged decrease of the single contribution from 41 to 15 per cent) (first quarter of 2015);

Harsher punishment for paying “black” salaries (drafting amendments to the Code of Ukraine on Administrative Offences and the Criminal Code of Ukraine) (first semester of 2015);

Approval by the Ministry of Finance together with the National Bank of Ukraine of legislative acts aimed at decreasing the shadow turnover of cash (first quarter of 2015);

Decrease of tax burden over small and medium business, in particular:

  • halving the single tax rate (first quarter of 2015);
  • establishing prohibition of commercial entities tax audits by controlling bodies during 2015 – 2016;

Implementation of tax compromise institute to ensure declaring of available assets in full and implement mandatory declaration of revenues;

Transfer pricing control, in particular, drafting and facilitating the approval of amendments to the transfer pricing legislation (2016);

Implementation of the new VAT administration system (first quarter of 2015);

Finalizing the state procurement reform, drafting and facilitating the approval of the Law of Ukraine on electronic state procurement (2015), and implementation of electronic procurement (2016);

Fulfillment of IMF cooperation program (within the program time span);

De-monopolization of economy:

  • formation of the new Anti-Monopoly Committee composition (first semester of 2015);
  • drafting and facilitating the approval of the new edition of the Law of Ukraine “On economic competition protection” (2015);
  • capitalization of state-owned banks;

Active promotion of exports and domestic market protection:

  • taking all possible advantages of the free trade regime with the EU member states (continuously);
  • conclusion, taking into account national interests, of free trade agreements with Canada, Turkey, Israel, Cooperation Council for the Arab States of the Gulf, the Economic Community of the West African States (till 2018);
  • assertive policies of the Trade Commissioner of Ukraine (continuously);
  • doubling the volume of domestic manufacturers’ goods exports till 2019.

5. New state property management policies:

Implementation of corporate management according to the OECD standards, appointment of recognized specialists to the key positions in the state companies:

  • implementation of efficient management of the state objects (2015);
  • implementation of international audit firms to the audit of key state-owned companies (annually);
  • fending civil servants employed  with the state bodies off the state-owned companies management (2015);

Large-scale and transparent privatization of state-owned property under appropriate economic conditions:

  • drafting and facilitating the approval of amendments the Law of Ukraine “On the list of state property title objects not subject to privatization” (exclusion of more than 1200 objects) (first quarter of 2015);
  • change of evaluation methodology while preparing to privatization (2015);
  • implementation of blocks of stock sales at international stock exchanges (2016 – 2017);
  • introduction of auction-based bidding as a principal means of privatization  (since 2016);

Modifying the system of strategic state property management via creation of the holding companies relying on international governance standards  (2016 – 2017).

6. New food policy:

Preparation for land reform:

  • inspection and delimitation of state-owned, community owned and private agricultural lands;

Improvement of tenancy relations, monetization of lease payments, implementation of efficient regulatory mechanisms for land lease market development:

  • drafting and facilitating the approval of the Law of Ukraine “On amending the Law of Ukraine “On the land lease” with respect to long-term tenancy (2015);
  • formation of the State Land Cadastre database (2018);

Support and development of small and medium agricultural businesses:

  • drafting and facilitating the approval of the Law of Ukraine “On local agrarian markets” (2015);
  • approval and implementation of microlending program for small farming units (2015-2016);

Establishing leadership on world food markets, support of exports, opening European markets for domestic manufacturers and processing enhancement;

  • creation and promotion of the “Product of Ukraine” brand  (2015);
  • development of sea port and railway infrastructure for export enhancement (2015 – 2019);
  • utilization of agricultural quotas for the EU member countries market and expanding their scope (continuously);

Food safety during emergency conditions, ensuring stable agricultural operations in the sowing season:

  • drafting and facilitating the approval of the new edition of the Law of Ukraine “On the state stock supplies reserve” (2015);
  • modification of the role of Agrarian Fund through drafting and facilitating the approval of the new edition of the Law of Ukraine “On the state support of agriculture of Ukraine” (2015);

Engaging loan resources (up to USD 1 billion) from the international institutions (2015);

Establishing of efficient corporate management system of the State Food and Grain Corporation and Agrarian Fund PJSC.

7. New energy independence policy:

Engagement of investors in modernization and operations of the Ukrainian gas transportation system:

  • implementation of the Law of Ukraine “On amending certain laws of Ukraine on reforming the management system of the Single Gas Transportation System of Ukraine”;
  • announcement of international competition to attract investors (2015);
  • implementation of joint GTS modernization project with EBRD and EIB (till 2020);

Reorganization of the National Joint-Stock Company “Naftogaz of Ukraine” in accordance with the EU Third Energy Package:

  • establishment of PJSC “Main Gas Pipelines of Ukraine”, establishment of PJSC “Underground Gas Storage Facilities of Ukraine” (2015);
  • complete financial sanitation of  the National Joint-Stock Company “Naftogaz of Ukraine”  (2017);

Integration of Ukrainian energy system in the ENTSO-E European energy network (since 2017);

Fulfillment of coal industry reform program: winding-up 32 unprofitable coal mines, conservation of 24 mines, privatization of 37 mines (2015 – 2019);

Modernization of fuel and energy industry infrastructure:

  • modernization of nuclear and hydropower plants;
    • completion of power generation units at Khmelnytska nuclear power plant (2020);
    • construction of 110-km long Drozdovychi-Hermanovychi gas pipeline (2018);
    • construction of the third power unit at Dnistrovska hydroelectric pump storage plant (2015);
    • construction of 750 kW electricity mainlines (2017);
    • increasing the capacity of Pivdennoukrainska NPP by 1,600 MW, Zaporizka NPP – by 700 MW, Rivnenska and Khmelnytska NPP – by 1000 MW each  (2016);
    • construction of central storage facility for spent nuclear fuel (first line – 2017);
    • fulfillment jointly with the EBRD of comprehensive consolidated program for NPP power units safety enhancement (till  2017);
    • operational time extension of 9 power generation units (till 2020);

Diversification of fuel supply ways and sources (coal, natural gas, nuclear fuel):

  • enhancement of domestic extraction of hydrocarbons;
  • extension of direct contracts for natural gas supply with the European companies (annually);
  • negotiations on obtaining permission for passage through Bosporus  for the foreign LNG vessels (2015);
  • construction of LNG terminals and interconnectors (based on the negotiations outcome;
  • expansion of nuclear fuel acquisition program from Westinghouse company (2016 – 2017);
  • coal procurement on international market;
  • modernization of heat and power plant s power generation facilities (2015 – 2017);

Cancellation of cross-subsidies, adoption of market-based tariffs for natural gas and power, which would support energy companies profits growth, along with the implementation of reimbursement mechanisms for the low-income populations (2017);

drafting and facilitating the approval of the new edition of the Code of Mineral Resources, in particular, introduction of transparent and fair competition rules for minerals extraction through open bidding, taking mineral extraction out of the shadow economy sector (coal, turf, amber) (first semester of 2015);

Cancellation of joint activities and uptake of products distribution contacts in minerals mining:

  • drafting and facilitating the approval of the Law of Ukraine “On amendments to the Law of Ukraine “On products distribution contracts” (first semester of 2015);

facilitating the efficient consideration of the claim against Gazprom JSC in the Arbitration Institute of Stockholm Chamber of Commerce with respect to terms and conditions of natural gas transit and supply contracts (first semester of  2016);

Implementation of mixed taxation system for energy sector according to international standards (2015);

Increasing energy efficiency via alternative energy sources (clean energy) projects implementation;

Construction and renovation of residential houses under the new energy efficiency standards (preparation of new construction regulations and energy efficiency standards).

8. New social policy:

Social sphere changes:

  • creation of fair pension system, cancellation of special retirement allowances via the following activities:
    • drafting and facilitating the approval of amendments to the Law of Ukraine “On pensions”, adoption of the uniform pension calculation principle (first semester of 2015);
    • extended taxation of high pensions;
  • development of non-state pension insurance, implementation of accrual-based pension insurance system via the following activities:
    • drafting and facilitating the approval of the new edition of the Law of Ukraine «On obligatory state pension insurance»   (first semester of  2015);
    • cancellation of inefficient social benefits;
  • introduction of targeted and monetized social benefits (amendments to 25 legislative acts) (2016);
  • consolidation of state insurance funds and ensuring their operational transparency via the following activities (2015):
    • drafting and facilitating the approval of the Law of Ukraine “On the obligatory state social insurance against temporary disability and burial expenses” in new edition;
    • drafting and facilitating the approval of the Law of Ukraine “On the obligatory state social insurance against industrial accidents and professional diseases resulting in disability” in the new edition;
    • decrease of funds administrative expenditures by UAH 600 million;
  • labor legislation reform
    • drafting and facilitating the approval of the new Labor Code of Ukraine (2015);

Health care reform system:

  • elimination of corrupt arrangements in the course of health care tenders, transfer of the state procurement functions from the MoH to, inter alia, international organizations (2015 – 2016) via the following activities:
    • procurement of vaccines and other groups of special medicines through UN organizations and other international organizations and funds;
    • entering into direct long-term contracts with medicinal products manufacturers;
  • transformation and modernization of the hospital network and creation of three-level system (local hospitals – regional hospitals – national reference centers) (2017) via the following activities:
    • drafting and facilitating the approval of the Law of Ukraine “On health care facilities and medical services”;
    • application of the Law of Ukraine “On public and private partnership in health care field”;
  • de-regulation of pharmaceuticals market, significant reduction of the number of obligatory licenses and permits (2015 – 2016)  via the following activities:
    • acknowledgement of registration of pharmaceuticals and medical goods manufactured in EU, USA, Canada, Australia and Japan with further application of reciprocity principle;
    • drafting and facilitating the approval of the Law of Ukraine “On amending the Law of Ukraine “On pharmaceuticals”;
    • drafting and facilitating the approval of the Law of Ukraine “On medical insurance”;

Education quality enhancement:

  • implementation of the Law of Ukraine “On higher education”:
    • establishing new rules of education facilities accreditation and licensing;
    • creation of independent higher education quality assessment system;
    • ensuring financial autonomy of higher education institutions;
    • ensuring adequacy of state order to actual labor market needs;
    • reforming of pre-school, secondary, technical training according to the European standards via the following activities;
      • drafting and facilitating the approval of the Laws of Ukraine “On education” and “On technical training” (first semester of 2015);
      • integration of education and science, creation of technology and science parks, transfer to project-based R&D funding via the following activities:
        • drafting and facilitating the approval of the Law of Ukraine “On scientific and R&D activities” (first semester of 2015).

9. New cultural policy:

Development and implementation of the Ukrainian Cultural Policy Strategy (2015);

Drafting and facilitating the approval of the Law of Ukraine “On national cultural product” (2015);

Attracting of new funding sources for cultural activities (2015 – 2016).

10. New youth and sports development policy:

Approval of the Youth Policy Concept (2015);

Revitalizing of the national patriotic upbringing and awareness system (continuously).

11. New international aid policy:

Implementation of cooperation programs with IMF, World Bank, EBRD, EIB and other IFIs;

Holding international donor conference and approval of international support and restoration plan for Ukraine for 2015-2017;

Establishment of the single center for donor and international assistance coordination;

Engagement of assistance for IDPs and Ukrainian citizens in Donbas and the Crimea, in particular, Crimean Tartars, from United Nations, G-7 and the EU.

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