Zelensky delivers annual situation address to the parliament

President Volodymyr Zelensky gave the annual Address on
the Internal and External Situation of Ukraine to the Verkhovna Rada on Dec. 1,
president.gov.ua announced. Key points include the need to have direct talks
with Russia to establish peace and return occupied Ukrainian land, the
introduction of Ukrainians being allowed to hold more than one citizenship, and
the submission of a bill to the parliament of what Zelensky called “economic
passports” for children.

The economic passport would set up personal savings
accounts for the children of Ukrainian citizens, and fill them with a
percentage of the revenue from the fee for subsoil use. When the children grow
up, they would be able to use the funds for education or buying housing.

Zelensky also noted the upcoming launch of the
Ukrainian Dream program, which would enable “every citizen who pays taxes
honestly” to be able to take out hryvnia denominated loans at 5% for buying
real estate, electric cars, or get an education.

James Hydzik: The address
marked the introduction of a major populistic push, and it’s possible that some
of the key directions from the speech will come to fruition in a way that will
really help Ukrainians. The multiple-passport point will not staunch the brain
drain among the country’s IT and engineering specialists, but it can help to retain
ties, which would be useful for those who contemplate returning.

How economic passports will fit economic reality is a
different issue, and this will need to be studied carefully. The accounts would
be opened for those born starting in 2020, but despite changes to the fee for
subsoil use passed by the Verkhovna Rada, falling prices will mean that the
starting point for the accounts is likely to be less than some would expect.
This is a potential PR trap for the administration.

As for direct talks with Russia, there is no
expected change in the near future. However, the probability that U.S Secretary
of State Blinken and Russian Foreign Minister Lavrov will come to terms on a
date for a call between their respective presidents opens the possibility of
another push to get Putin to talk to Zelensky, which in itself would be a
change.