In his first year as Minister of Economy, Igor Petrashko fulfilled 17 promises (20 percent) and then failed – 3. me.gov.ua
Ihor Petrashko has served as Minister of Economic Development, Trade, and Agriculture in the government for a year now. It's not as if this period has been easy for him. In the fall of 2020, Petrashko was considered one of the first to leave the Cabinet: deputies were dissatisfied with the lack of a strategy for the country's economic development. The Verkhovna Rada registered a resolution to dismiss Petrashko (Batkivshchyna, Opposition Platform - For Life, and Servant of the People), citing that during his tenure, key economic indicators had worsened, unemployment had risen, and the rate of job creation was too low. However, less than a month later, the resolution was withdrawn. "Word and deed" analyzed how the head of the Ministry of Economy fulfills his promises.
Igor Petrashko made 85 promises during the year: 17 (20%) fulfilled, 3 failed to fulfill, 65 in the process of being implemented.
What promises did Petrashko break?
Petrashko failed to fulfill the promise in the government's action plan to involve Ukrainian citizens who returned after long stays abroad in active economic life.
According to the Ministry of Economy, to preserve and create jobs, including for migrant workers, a mechanism for providing partial unemployment benefits during the quarantine period has been introduced, the procedure for registering with the Employment Service and receiving benefits has been simplified, and a mechanism for assisting citizens with a range of career guidance services has been established. Furthermore, a bill has been drafted to implement assistance for the economic reintegration of migrant workers.
But almost all of these measures are temporary—in effect only for the duration of the quarantine—and the bill has not yet been passed.
In May, Petrashko promised that the "New Money" program—providing state guarantees on a portfolio basis—would soon be launched in Ukraine. The Verkhovna Rada passed a law allowing the state to provide portfolio guarantees of up to UAH 5 billion in 2020. However, the Cabinet of Ministers only defined the mechanism for providing these guarantees in late November. Considering that the program only became operational six months later, the promise remains unfulfilled.
The minister also failed to fulfill his promise to secure the sale of 10 distilleries by 2021. According to the State Property Fund, the distilleries were not privatized from November to December.
Raising the minimum wage and state support for farmers: what the minister accomplished this year
Ihor Petrashko fulfilled his promises to increase the minimum wage in 2020 and 2021. Last year, the minimum wage rose to 5 hryvnias on September 1. The 2021 state budget stipulates that the minimum wage will be 6 hryvnias on January 1 and 6,5 hryvnias on December 1.
The minister fulfilled his promise to increase funding for state support for farmers in 2021. The budget allocated UAH 4,5 billion for the "Financial Support for Agricultural Producers" program (compared to UAH 4 billion the previous year). The program for partial compensation of the cost of agricultural machinery was also extended for this year.
As Petrashko promised, funds have been allocated for the reconstruction of the National Cancer Institute laboratory in 2021: UAH 104,7 million has been allocated as part of the state investment project "Improving Molecular Genetic Diagnostics of Oncological Diseases in Ukraine."
The Minister of Economy fulfilled several promises from the Cabinet of Ministers' program. For example, among the government's short-term goals was ensuring the use of fiscal and other instruments to reduce the burden on businesses. The Verkhovna Rada adopted amendments to the Tax Code to support Ukrainian businesses during the quarantine, which provide for the forgiveness of taxpayers' tax debts.
The Cabinet of Ministers also introduced a "portfolio guarantee" program and improved the "Affordable loans 5-7-9%" program, providing the opportunity to defer the principal and interest on the loan (providing "credit holidays").
Thanks to these same programs, promises to provide credit support to small and medium-sized businesses were fulfilled, as well as to introduce new and expand existing credit support programs for small and medium-sized businesses.
The commitment to transfer agricultural land plots to the ownership of amalgamated territorial communities has been fulfilled. In November, the Cabinet of Ministers instructed the State Geocadastre to begin land transfers. As of the end of 2020, over 2 million hectares of land had been transferred to 1,251 communities (out of 1469). Not all communities received land ownership, as some did not hold their first session due to re-elections, court cases, and other issues. However, once these obstacles are resolved, the communities will receive the land.
What promises does Petrashko still need to fulfill?
The minister's promise to create 500 jobs is still in progress: 85 in agriculture, 154 in road construction and transport infrastructure, and 150 in public works.
For 2021, Petrashko promised to launch an irrigation support program, initiate new programs to combat drought, introduce a potato farming support program, and ensure the launch of insurance programs for farmers.
Petrashko's programmatic promises include: ensuring the demonopolization of key industries, expanding the presence of Ukrainian products in foreign markets, reforming the Antimonopoly Committee, and attracting investment capital for the development of innovative and priority sectors of small and medium-sized businesses.
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