Ukraine may face long-term risk of delayed social payments
The Cabinet of Ministers of Ukraine has an alternative action plan in place for the first months of 2024 if funding from foreign partners is delayed, and in the longer term, there is a risk that payments to social categories will be delayed.
Source: Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, on Facebook
Details: She stated that Ukraine has a plan B in case of delays in receiving funds from foreign partners.
Quote: "Together with our partners, we are currently working on several scenarios in case there are delays in funding from the EU and the US. But we are convinced that they will not be needed. We see clear signs from our partners that there will be funding," Svyrydenko said.
"In the short term, in the first few months of the year, the government has an alternative plan for handling the funding delay. At the same time, there is a risk that payments to certain social categories will be delayed in the long run, as the priority will be to support security and defence.
But once again, it may not come to that point, and this is just one of a number of options we are analysing," she explained.
According to Svyrydenko, in 2024, the Cabinet of Ministers of Ukraine plans to add incentives for economic development and faster growth, in particular:
- production development;
- support for non-resource exports;
- attracting investment in the real economy.
According to Svyrydenko, the priority steps include the following:
- confiscation of Russia's sovereign assets for distribution to Ukraine;
- expanding exports and transport links. This means more than USD 10 billion in export earnings in the future, she explained.
- expansion of energy capacities;
- return of Ukrainians;
- development of defence industry enterprises;
- attracting investment in Ukraine's economy through financing, war risk insurance, and privatisation.
Background:
Previously, Svyrydenko said that Ukraine may face delays in the payment of salaries and pensions for almost 12 million people if the West does not provide financial assistance in early 2024.
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