#Official Commentary of Marina Zheynova on Ukrainian government’s efforts in housing area
On February 1, the Ukrainian citizens got a ‘present’ from the Ukrainian authorities in the form of another increase bot only of utility tariffs, but also of all related benefits.
Despite the statement made by Vice-Prime Minister Pavel Rozenko that a cost of utilities would be fixed in the near future and there would not be another tariff increase, but it turned out that his actions did not correspond with words.
What is really awaiting Ukrainians in 2017? There will be another tariff increase for central water supply and water disposal, heat and increase of maintenance fee, not to mention standard benefits for people as gas and electricity. It was stated by The National Commission for State Regulation of Energy and Public Utilities. Local administrations in a number of Ukrainian cities and districts are already working towards a tariff recalculation and are ready to introduce them for consideration by deputies for further approval. So, Ukrainians are anxiously waiting to receive new payrolls.
By the way, there is a piece of good news. The authorities promised to reduce costs for some medical products, particularly, for treatment of cardiovascular diseases, diabetes mellitus type II and asthma. Apparently, it has been done to help people go through this tariff increase.
What else have the Ukrainian authorities prepared for their own people? Here is a short list of already announced and occurred price and tariff increases:
- Cost of providers’ services has been increased by an average of 6%;
- Tariffs of mobile operators have been increased from 10% to 25%;
- Gradual increase (over the year) of cost of travel in passenger trains and urban e-transport;
- Tariff increase for electricity and thermal energy for economic entities, which will lead to a rise in production costs and will fall on an ordinary consumer.
I think it’s no longer meaningful to list ‘improvements’. We should touch upon an issue of subsidies. As I have written before, an increase in the minimum wage to 3,200 UAH will automatically reduce the number of those, who want to receive a subsidy. The Cabinet of Ministers of Ukraine is planning to cut expenses on subsidies from 50,7 to 47,1 billion UAH this year.
According to the Ministry of Regional Development, Construction, Housing and Utilities of Ukraine, 9 million flats and houses have benefits. That is, about 60% of families live below the poverty line. The status of Ukraine as a “country of subsidy” is confirmed again.
Moreover, the Ukrainian government has approved a bill “On provision of state control during social assistance”, which will establish an inspectorate to identify fraudulent schemes in benefit payments. So, it is up to the parliament now.
Consumers in the Ukrainian segment cannot even talk about economy. Of course, such processes occur everywhere when an economic performance of the country declines. But not on such a scale and certainly not accompanied by a crazy growth for domestic services and goods. Due to the fact that prices are growing in Ukraine, it is being introduced as “approximation to the EU” and growing prices has long been accepted as granted. And if you are against it, then…
Marina Zheynova, the DPR People’s Council deputy