Tuesday, April 6, 2010

President holds weekly meeting with PM

"I would like to know what the draft budget looks like for us to discuss its weaknesses in advance and know what we need to do in this time", - the head of state.

The President stressed that he understands the degree of ruin in the economy inherited from the predecessors of the current Government: no money in the economy, treasury accounts are empty, "enormous strain at all levels of government as we do not yet see what will this year be”. Therefore, according to Viktor Yanukovych, he would like to hear from the Prime Minister the answers to most pressing questions – settlement of social problems, spring field works plan, etc.

The President also said that during his yesterday's visit to Moscow among others issues sides have discussed gas trade.

"From our side there is an initiative, from theirs there is a desire to consider our proposals. Therefore let's not waste the time and together with the leaders of the energy sector develop the proposals.

In the history of our work there has never been a situation that we could not find a solution to. And in this case we cannot wait; we must act”, he said, adding that gas trade issues will certainly be discussed during negotiations with President of Kazakhstan Nursultan Nazarbayev.

"It is clear that with the price of gas at 330 dollars per thousand cubic meters chemical industry would stop, and mining industry will work with negative profitability. So, accordingly, there will be no budget revenue ", said Mykola Azarov.

The Prime Minister also noted that with gas price at 330 dollars per thousand cubic meters and  burdened with previous debts Naftogaz of Ukraine will have the cash gap of almost $60 billion.

"It is unacceptable for the budget, because its overall deficit is calculated including the Naftogaz deficit.

We worked on these problems and now wait for answers from our Russian partners on those signals that the President and Government of Ukraine have sent to the Russian side about the situation with gas price for this year ", emphasized Mykola Azarov and said Ukraine hopes for positive reaction from the Russian colleagues.

According to him, it will allow preparation of this year’s budget with taking into account normalization of the domestic industry and hence improve social standards.