Published by RBC-Ukraine

The 2010 State Budget is a “consolidated anti-crisis document,” Prime Minister Yulia Tymoshenko said at the start of today’s extraordinary session of government.

According to Tymoshenko, all necessary meetings with heads of oblasts state administrations, village, town and city councils will be held by September 15. Budget issues will also be discussed individually with each ministry.

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Published in Inform issue #122
See the full issue here.

Ukraine’s economy is showing signs of a modest recovery as industrial output grew by 5 percent month on month in July. Yet official figures reveal that the economy shrunk 18 percent in the second quarter despite this representing a marked improvement over the 20.3 percent decline in the first quarter.

“We can certainly speak of signs of a stable improvement in the economy," said Prime Minister Yulia Tymoshenko, who, although cautious, welcomed the figures.

Industrial production declined by 26.7 percent year on year in July, compared to a drop of 30.4 percent over the first 7 months of the year. This improvement in fortunes is largely attributable to a faster than predicted rebound in China, with Ukraine’s steel output jumping 15 percent in response to demand from the Far East. Despite this record figure, steel output was down 40 percent for the 7 months to July compared with the same period in the prior year.

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Published in Inform issue #121
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Prime Minister Yulia Tymoshenko has sought to defuse the rhetoric flowing between Kyiv and Moscow following Russian President Dmitry Medvedev’s letter to President Viktor Yushchenko.

Ms Tymoshenko said, "Notwithstanding the fact that the foreign policy is the constitutional prerogative of the president, I cannot keep silence on the latest developments in Ukrainian-Russian relations. Taking into account their importance, I'm concerned over an extremely high level of public polemics on this subject."

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RBC-Ukraine

Prime Minister Yulia Tymoshenko has asked the International Monetary Fund to send a working group to Ukraine from 31 August – 4 September, she said during today’s government meeting.

According to Tymoshenko, the budget process in Ukraine risks being politicized due to the upcoming presidential elections. “The elections are basically underway. That’s why I asked the IMF’s European department headed by Ceyla Pazarbaziolu to come to Ukraine from 31 August - 4 September to create a working group to help draft the 2010 state budget,” Tymoshenko said.

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Government Press Service

Prime Minister Yulia Tymoshenko and Prime Minister Volodymyr Putin held a telephone conversation at 4:00 p.m. today to discussed holding the Ukraine-Russian Economic Committee meeting in October and to agree on a preliminary agenda for the event. Among the issues for consideration are joint serial production of An-70 aircraft and other economic cooperation.

The parties also confirmed positive and effective cooperation in the implementation of the bilateral gas Agreement on supplies to Ukraine and transit of the Russian gas to Europe.

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RBC-Ukraine and CMU Press Service

The Ukrainian economy remains attractive for investment, Prime Minister Yulia Tymoshenko said during her opening remarks at today’s government meeting.

According to data, direct foreign investments in the second quarter of 2009 exceeded $1.5 billion. “This is a sign that the economy is picking up and we are gradually recovering from the crisis. This means that Ukraine is attractive for investors. This is very important,” the premier said.

Published in Inform issue #120
See the full issue here.

The Government of Ukraine has maintained its consistent record in paying Gazprom for natural gas consumed under the new contract brokered last January. This time the government paid early, with a $605 million payment made to the Russian gas company for gas it purchased in July.

The payment came days after the International Monetary Fund (IMF) released $3.3 billion to Ukraine, with the understanding that $1.9 billion could be allocated to servicing foreign debt.

Prime Minister Yulia Tymoshenko stopped short of saying that the IMF funds were used to pay Gazprom, saying, “we used money from the state budget for the payment.” Also, the premier made it clear that the government intends to boost reserves of gas put into storage. The premier said that by mid-October Ukraine expects to have 27 billion cubic metres of gas in storage.

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Published by Kyiv Post

Ukraine has paid $605 million for Russian gas supplied in July, Ukrainian Prime Minister Yulia Tymoshenko has said.

"The government has paid for gas pumped into storage facilities today, before the deadline. We've transferred $605 million and have paid in full for gas originating in Russia," she said at a press conference in Kyiv on Wednesday.