Acting Deputy Chairman of Ministers’ Council of Alexander Timofeyev sums up work of economic bloc of ministries and departments for 2017

On December 15, according to the agenda, in the framework of parliamentary control over the activities of the Council of Ministers, Acting Deputy Chairman of the Council of Ministers Alexander Timofeyev reported before the deputies on the results of the work of the economic bloc of ministries and departments in 2017.

Six ministries and six committees are in the area of responsibility and daily work of the economic bloc:

  • Ministry of Inland Revenue,
  • Ministry of Economic Development,
  • Ministry of Coal and Energy,
  • Ministry of Industry and Trade,
  • Ministry of Transport,
  • Ministry of Agro-Industrial Policy and Food,
  • The Republican Tariff Service,
  • The Republican Antimonopoly Service,
  • State Committee for Land Resources,
  • State Committee for Water and Fisheries,
  • State Committee for Forestry and Hunting,
  • State Committee for Geology and Geoecology.

A qualitatively new level of development of the Republic was achieved in the course of overcoming challenges and threats of 2017.

The transport, economic and humanitarian blockade, organized by Ukraine, revealed our industrial and human potential.

Sustainable economic situation and development is achieved due to the balanced and coordinated interaction of executive authorities.

In 2017, executive bodies that are part of the functional economic bloc, the Department for Analysis and Strategic Development, 371 draft acts of the Council of Ministers were developed; 111 drafts of decrees and orders of the Head of State were prepared and further considered.

Of these, a number of pieces of legislation are of an interdepartmental nature and have the most important social significance.

For example, enterprises of the coal industry, as a result of objective circumstances, did not pay a single fee for compulsory state social insurance. The problem was solved on July 18, 2017, by signing the Order of the Head “On Inclusion in the Insurance Period of the Work Period at the Enterprises of the Coal Industry of the DPR”. This was coordinated work of the Ministry of Coal and Energy, the Pension Fund, the Ministry of Labour and Social Policy, the Ministry of Finance. This Order allowed for the calculation of the insurance period for employees of the coal industry’s state enterprises – and this is almost 6 000 people – to include periods of work at state enterprises (from 2014 to July 1, 2017), regardless of the payment by such enterprises of a single contribution (the debt amounted to 2.4 billion rubles).

Particular attention is paid to ensuring the food security of the Republic. And as a result, in 2017 there was a surplus of the food group of cereals, the index of meat and dairy production increased.

According to the Central Statistical Office, the total volume of agricultural and industrial products sold in January-October 2017 amounted to 132 billion rubles.

Along with the usual practice, fundamentally new methods of poultry farming development have been applied at the Shakhtyorsk Poultry Farm, which allowed reducing the cost of poultry meat by half.

In 2016, the price of chicken meat exceeded 200 rubles per 1 kg. Currently, the price is in the range of 100 rubles per 1 kg.

Ambitious plans are being developed and implemented under the programme of import substitution of fruit and berry products.

For example, under the programme “Superintense apple orchard”, this year more than 35,000 apple seedlings were planted on a total area of 100 hectares, which will allow to fully meet the domestic needs of the Republic with apples of own production by 2021.

The second example. The use of modern greenhouse complexes allowed not only to saturate the domestic market of the Republic with vegetables of own production, but also to sell them for export.

At present, 5 hectares are occupied by greenhouses, another 250 hectares are planned to be brought under cultivation.

In the field of development and restoration of transport infrastructure, for the first time in all the years of Ukraine’s existence, the following roads have been renovated:

  • Donetsk – Novoazovsk – Sedovo,
  • Znamenka – Lugansk – Izvarino,
  • Donetsk – Khartsyzsk – Avmrosiyevka – Uspenka.

Also, repair of public roads and local roads is being carried out, bridges and overpasses are being restored.

In the field of railway transport, a number of milestone events have taken place.

Considering that the control center of the railway transport was in Kiev, in 2017 the entire railway communication system of the Donetsk People’s Republic was rebuilt. The State Enterprise “Donetsk Railway” employed more than 14 thousand employees of PJSC “Ukrainian Railways”.

The volume of rail transportation has been increased, the infrastructure for repair and maintenance of locomotives and rolling stock has been restored.

In 2017, the work of the fuel and energy complex of the Republic was stabilized.

In Ukraine, the coal industry was the most subsidized in the state. The annual volume of subsidies to the industry was more than 12.5 billion UAH. Due to the properly built state management system, the coal industry not only does not need subsidies, but is also the largest creditor in the Republic.

The issue of compensation of mutual claims and obligations formed in 2016 between the enterprises of the fuel and energy complex and housing and communal services has settled. The amount of compensation amounted to about 1 billion rubles. To this amount, state enterprises of the coal industry paid off arrears on payments to the budget of the Republic.

In recent years, significant progress has been made: new breakage faces are being put into operation, coal mining is increasing, upgrades and capital repairs of the enterprises’ mine fund are being carried out, social guarantees for workers in the industry are being fulfilled.

The reliable power supply to all consumers of the DPR is ensured, the system of electricity export to the Lugansk People’s Republic is effectively functioning. Rehabilitation works, major repairs and reconstruction, as well as the construction of new facilities and power lines (for example, the Novoazovsky district, Gorlovka, Debaltsevo hub, the village of Krasny Partizan) are underway.

Adoption of the necessary measures to ensure timely settlements for energy carriers and settlement of issues of debt repayment in past periods allowed stabilizing and balancing the situation in the wholesale electricity market.

Unconditionally, the blockade on the part of Ukraine had a negative impact on the economy of the Republic as a whole. Nevertheless, thanks to coherent, coordinated and effective work, it was possible not only to stabilize the situation, but also to create positive trends in the industry.

Showing real results, the institution of provisional administrations that was formed proved to be fully justified: the major city-forming enterprises of the metallurgical complex resumed and are active.

A number of comprehensive measures have been taken to improve the reputation and restore the export potential of domestic producers. The established Chamber of Commerce and Industry of the Donetsk People’s Republic, among other things, issues certificates of origin.

The Donbass is, above all, free and hardworking people. The measures taken to restore and further develop the industry make it possible to realize an important social function: preserving existing and creating new jobs. The achieved results made it possible not only to maintain the level of social obligations to the maximum extent, but also to have a direct positive impact on the growth of population’s incomes.

Stabilization of the situation in the economy and industry is certainly an important achievement of the expiring year.

We’ve been working this year, solving acute problems often still in manual mode.

During this time, we’ve almost completed the construction of all systems and management institutions that ensure normal, uninterrupted operation and further development.

Solving the current problems, we’ve been actively analyzing the available potential, identifying reserves to ensure qualitative changes in the economy and industry. I mean personnel, production, scientific, technical and technological potentials.

Therefore, to stimulate pioneering work, concentration of science efforts, investors and the business community and ensure coordination in the field of innovation development, the State Committee for Science and Technology has been established, whose activities at the level of the Head of the Republic are coordinated by the State Council for Science and Technology under the Head of the Donetsk People’s Republic.

For the active introduction of new developments and technologies, the State Corporation “Scientific and Production Association “Progress” was established in the Republic under the leadership of the State Council for Science and Technology.

The corporation includes the largest engineering enterprises and leading scientific institutions that ensure the development, design and testing of a new high-tech, competitive in the domestic and foreign markets of machinery and equipment.

In general, the foundations and the concept for the preparation of a strategy for the development of industry and the economy of the Republic as a whole have been formed.

The main principles that we pile in the preparation of the strategy are the formation of the highly efficient economy, the re-creation of existing enterprises, and the creation of new industries.

Our fathers and grandfathers had been creating powerful industry, building mines, factories and plants for decades. Ukraine is destroying this heritage, turning the state of our ancestors into a poor agrarian appendage of developed countries. We do not want to go down that way, we have a different vision for the future.

We will develop effective modern production, high-tech industry, create production, where our people can provide a decent life for their fathers and mothers, grow in prosperity and ensure the development of their children.

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