Yatsenyuk claims accomplishments, stress unity with the president

The Ukrainian government fulfilled its main tasks, which numbered seven, that stood before it in 2014, Prime Minister Arseniy Yatsenyuk said in his Dec. 30 press conference. It succeeded in taxing the hyper-profit of big business, eliminating tax evasion schemes, beginning to bring wages out from the shadow economy, reducing the tax burden on small and medium business, reducing spending on the state bureaucracy, approving a balanced budget and showing the public that there is a coalition government capable of reaching decisions, “even at five in the morning.”

In particular, the Cabinet succeeded in collecting UAH 12 bln in taxes from big business, Yatsenyuk said, adding that more should have been collected. The 2015 budget will keep in place the tripled rents and royalties on oil, natural gas and condensate, he said.

In the natural gas sector, Yatsenyuk identified his accomplishments as becoming independent from Russian gas, launching reverse supplies from the EU, modernizing the gas transit system, eliminating intermediary suppliers such as Dmytro Firtash, and dividing state firm Naftogaz into three companies, which will help to improve its finances. Gas prices were raised and will continue to be raised for consumers, with subsidies and discounts for those in need, he said.

Yatsenyuk said he’s given Fuel and Energy Minister Volodymyr Demchyshyn one month “to either take control of his sphere and his ministry” or he will ask parliament for his dismissal. In particular, the prime minister referred to the report on the Ekonomichna Pravda news site about Demchyshyn’s alleged appointment of Yuriy Kasich to lead the state firm Ukrenergo. Kasich is the director of Chernihivoblenergo, which belongs to Russian businessman Konstantin Grigorishin.

Yatsenyuk said he has no conflict with Ukrainian President Petro Poroshenko. “I am united with the country’s president and you saw that during the last months of our work together,” he said. “We can have different views, we have discussions behind closed doors. But the final position of the president and prime minister is a common one,” Yatsenyuk said.

In particular, Yatsenyuk said he fully supports the president’s plan to resolve the armed conflict in Donbas. “He’s doing a lot for this,” he said. “There’s a problem here with the other side. Not the so-called Russian terrorists, but Russia directly.” The Russian government needs to stop supplying arms to Russian terrorists and remove its FSB agents and soldiers, he said.

Zenon Zawada: Naturally, at his year-end press conference, Yatsenyuk is going to spin the events to his favor. Yatsenyuk is widely regarded as Ukraine’s best prime minister, and justifiably so. His predecessors weren’t impressive. Yet his embellishments were numerous: eliminating oligarch Firtash from the gas sector when other factors were at play, independence from Russian gas has by no means been achieved and small and medium business still have excessive tax burdens. Claiming to have balanced the budget, whose deficit increased ahead of a crisis year and contrary to IMF requests, is an utter distortion.

Yatsenyuk and Poroshenko deserve credit for maintaining unity before the public, and on all key political challenges facing Ukraine. This unity was lacking in the previous pro-Western government, leading to its demise and the ruining of the leaders’ political careers. No doubt, there is a serious rivalry between the Poroshenko and Yatsenyuk teams. Yet they have succeeded in reigning in their ambitions so far. Enhancing the authority of Oleksandr Turchynov as secretary of the National Security and Defense Council will either keep the unity in place in 2015, or undermine it.