“Under what conditions can the government introduce economic reservation, when to wait for the radically new Labor Code, is there potential for attracting foreign investment to Ukraine and how does the Ministry of Economy form support programs for business. About this – in a conversation with the guest of the regular Business Breakfast from Forbes Ukraine, Deputy Prime Minister and Minister of Economy Yulia Svyridenko Forum “Energy of Business” […]”, — write: businessua.com.ua
Under what conditions can the government introduce economic reservation while waiting for the radically new Labor Code, is there potential for attracting foreign investment to Ukraine and how the Ministry of Economy forms support programs for business. About this – in a conversation with the guest of the regular Business Breakfast from Forbes Ukraine, Deputy Prime Minister and Minister of Economy Yulia Svyridenko
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The head of the Ministry of Economy, Yuliya Svyridenko, 38, is responsible for dozens of important projects in the government: starting with programs to support business and reforming the Labor Code and ending with the implementation of economic reservations.
This year, grants and credit programs for business have been earmarked in the budget for about UAH 45 billion. Despite the increase in business taxes, the Ministry of Economy wants to keep most of the programs next year. “This is a way to turn donor funds into taxes that finance the army,” Svyridenko says on the air of the Business Breakfast YouTube project from Forbes Ukraine.
How does it approach the management of other tasks?
Julia Svyridenko’s direct speech has been shortened and edited for clarity.
About programs to support Ukrainian businessThe programs with the largest volume of financing are “Affordable loans 5-7-9” (18 billion UAH) and “eOselya” (9.4 billion UAH). Since the beginning of 2024, 17,000 loans have been issued under the “5-7-9” program. About 96,000 credits during the entire duration of the program.
Representatives of the World Bank believe that this is one of the most effective government programs, because it returns many times more taxes to the budget through the creation of new jobs.
Another important program is cashback on agricultural machinery. This year, 900 units of Ukrainian-made equipment were purchased under the program.
According to the Ministry’s calculations, UAH 45 billion for business support programs add an additional 1 percentage point to the annual GDP growth rate.
About raising taxesFor the needs of the Security and Defense Forces, we can only use internal revenues, that is, taxes and internal borrowing. All funds from donors are for the remaining expenses. International partners are closely monitoring this.
Talks that programs to support business should not be made, and that it is better to direct these funds to defense, is speculation. My task is to ensure that this money is not spent on “eating”, but invested in business.
This is a way to turn donor funds into taxes that finance the army. Over two years, entrepreneurs who participated in the grant program “Own Business” returned UAH 2 billion to the budget.
We must stimulate business to come out of the shadows. For example, only “white” builders can participate in the “eOselya” program, who at the time of purchase immediately grant a person the right of ownership. This is one example.
Yulia Svyridenko Photo by Anton Zabielskyi for Forbes Ukraine
About economy bookingThe budget for 2025 does not include income from economy bookings. We can return to this issue when it is understood that the army has enough resources to continue the fight.
According to the government’s calculations, up to UAH 100 billion per year can be additionally obtained from the implementation of economic reservations. It can also be another way of detinizing the labor market. More than 1.7 million people in Ukraine partially work in the shadows.
The number of those booked will depend on the results of mobilization, military plans and the course of hostilities.
About women’s and men’s wagesThe difference between the wages of men and women in the country really exists. On average, women receive 18.6% less wages than men. That is, based on these statistics, a woman can work for 6.5 years for free compared to men.
We plan to reduce the gap to 13.6% by 2030. We have comprehensively approached the issue and are planning changes to the Labor Code, which should legalize remote work at home. Equal pay for men and women is also prescribed. Another important factor is the availability of social infrastructure, such as an increase in the number of kindergartens.
About the new Labor CodeWe are working on the reform of the Labor Code. This is a complex reform. It applies to every citizen. I hope that by the end of the year the Rada will support the reform at least in the first reading.
Time changes, you need to be more flexible in the employment process. We want to introduce eight types of employment contracts. For example, a student employment contract, remote or seasonal work. Currently, the most common open-ended employment contract.
All contracts will be concluded in writing, currently 95% are concluded orally. This will ensure the rights of employers and employees. In the new Labor Code, trade unions will not have the right to veto the dismissal of an employee.
Modernization of the Labor Code is part of our European integration obligations. These are more than 20 European directives. Therefore, it is an irreversible process.
About “National Cashback” The “National Cashback” program is a targeted support of Ukrainians from the state when purchasing Ukrainian goods. 177,000 Ukrainians have already received UAH 2.9 million in cashback from this program. A total of 630,000 citizens issued a special card for accruing cashback, and 1.2 million citizens registered in the program. About 170,000 products from thousands of Ukrainian manufacturers are already available.
This program will be in beta testing from September 2nd until early October, after which we will be able to assess its impact. This year, on financing 3 billion hryvnias are included in the budget for the program. The next depends on the result that the program will demonstrate this year.
About investment projects It is impossible to bring an investment guide for a hundred projects to a conference in Berlin and immediately wait for investments. This is complex and difficult work. Currently, projects are under consideration by international financial organizations. There is already interest in certain projects.
We presented public projects. The government created a single investment council to which executive and regional authorities submitted their projects. A total of 750 such concepts were submitted, of which more than 100 were in the field of health care. Part of these projects will be financed from the budget, and the rest – potentially by international investors.
Yulia Svyridenko
About $50 billion in loans from frozen Russian assetsWe are working with partners to speed up the technical resolution of this issue.
We expect that we will be able to receive funds at the beginning of 2025. We insist that they should be provided to Ukraine unconditionally and be aimed at covering the state budget and military needs.
About changes in the Office of the PresidentWith whom are economic issues being discussed in OP after Rostyslav Shurma, the deputy head of OP, who was responsible for the economic direction, was dismissed at the beginning of September?
I discuss all economic issues personally with the president.
Forbes Ukraine editor Serhiy Shevchuk took part in the broadcast.
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