Yatseniuk: the government will not feed the mercenaries

5D965794-EEA9-450C-8F6A-33EA7F231769_w640_r1_s

 

2014/11/05 • Economy

Article by: Yana Polyanska

The territories of Donbas which are out of Kyiv’s control require almost 35 billion UAH in subsidies, says Ukrainian Prime Minister Arseniy Yatseniuk. According to him, the government wants to avoid a humanitarian crisis, therefore they decided not to ‘freeze’ the citizens of the occupied territories of Donbas: they will not disconnect gas and electricity. At the same time, social payments on the de facto occupied territories will not be issued, in order not to ‘finance the terrorists.’ The Prime Minister promises: the people will receive their pensions and subsidies as soon as the mercenaries leave Donbas.

The mercenaries on the occupied territories of Donbas will no longer steal the money the government is sending to Ukrainians, promised Prime Minister Arseniy Yatseniuk. As such, part of the region will not receive money from the budget: the occupied territories in Donetsk oblast require almost 20 billion UAH in subsidies, and the requirement for Luhansk oblast is almost 15 billion UAH.

Besides, the Ukrainians on these territories will not receive their subsidies and pensions until this region is returned fully under the control of the Ukrainian army.

“While the territories of Donetsk and Luhansk oblasts are under the control of various impostors, the central budget will not send money there. The government will not finance terrorists,” stated Arseniy Yatseniuk.

“All the pensions, all social payment, subsidies, are calculated for everyone. As soon as the terrorists get out of Donetsk and Luhansk territory, we will immediately take them under control and personally pay to each individual the social dues they have a right to,” noted the Prime Minister.

It will be warm in winter on the territories of Donbas controlled by the mercenaries

At the same time, Arseniy Yatseniuk reported that the government decided not to cut off gas and electricity supplies to the territories to avoid a humanitarian catastrophe. According to him, though the mercenaries are not paying money for the gas they consume to the Ukrainian state budget, the Cabinet of Ministers decided to demand this money from the region after the territories are freed.

“As soon as we regain control over these territories, the sum of money which is accumulated in the budget for social subsidies and payments will be decreased by the value of electricity and gas we currently supply to the territories of Donetsk and Luhansk oblasts, which are not under the control of the central government now. I think it is fair,” stated Mr. Yatseniuk.

The war is detrimental to the economy and investment climate in both Donbas and all of Ukraine

According to economist Volodymyr Lanovy, the war is detrimental to both the Ukrainian economy in general and the local budget of the territories the mercenaries have occupied. However, Lanovy emphasizes, the self-declared republics will have it harder in the future: they are artificially detached from the rest of Ukraine, have a destroyed infrastructure and a lack of income sources for the budget.

“Trade is an internal system, both parts have to be present. If trade and supplies from and to Donbas are disrupted, both side lose, naturally. We are now losing coal, there is less export revenue in general,” says Lanovy.

The expert notes that the investment climate in Ukraine is more detrimental to the budget, and not the fact that the occupied territories do not pay for gas. Investors are afraid of investing into a country with active combat or a frozen conflict. As such, Lanovy concluded, Putin is gradually ruining the Ukrainian economy by scaring off economic allies.

The mercenaries will use the suspension of pensions as a propaganda argument 

The government stops financing the territories occupied by the mercenaries, and the leaders of the gangs will use this as an instrument of manipulation, says social psychologist Viktor Pushkar. At the same time, the expert adds, the vulnerable classes will be the ones who will be easiest to influence: those who “equate themselves with the aggressor” and determines their welfare by the presence or lack of subsidies.

“It will be used as an argument for propaganda, that Ukraine refuses to pay your pensions or social dues,” emphasizes Pushkar.

Overall Donetsk and Luhansk oblasts, the liberated and out-of-control territories require almost 57 billion UAH in subsidies.

Translated by: Mariya Shcherbinina
Source: Radio Liberty

Tags: , , , ,

  • Brent

    The terrorists in the DPR were talking about ‘selling’ coal to Ukraine. They shouldn’t expect free gas or electricity in return.

    Putin has lots of money he stole from Russia so he can start subsidizing his new ‘frozen conflict’ territory and land let it bleed him and Russia like Crimea is. He sent a bunch of cabbage and vegetables to bribe the citizens to come out and vote, so he can feed them all winter. Maybe he can organize another rock concert and have the multi talented Steven Seagal come out and perform and kiss his butt again….the other option for donations might be the EU as they have an overabundance of vegetables and fruit they can donate instead of weapons……..

    • LorCanada

      Just a comment. Putin has put restrictions on Poland’s food products so why should Poland and other EU countries donate anything to rebel strongholds? It would just be falling in with Putin’s game, contributing to his activities against Ukraine.

    • Ian Rutherford

      more gas from brent’s arse
      change the record, will you ..

  • Evelyn Myketa Livingston

    Finally, a wise move from the govt. The terrorists and their supporters cannot have it both ways.

    • LorCanada

      Yep, the terrorists have no money. They just might start to “nationalize” the foreign businesses; demand the oligarchs pay taxes; and who knows what else. They’ll also just continue to steal from the locals. That’s why they’ll want to expand and overtake more land. It all points to the dismal sequence of events. They should be cleaned out so that Ukraine can get back to normal.

      • 1Billiam

        maybe Ukraine can begin to pay its bills…

        EU is still their guarantor….30% of the worlds black soil….china buying anything organic or inorganic….and they cant make it work?

        why did the stock market in Ukraine lose 60 % twice in 7yrs?

  • Dirk Smith

    Mercenaries? Is that the term of the month for terrorists? Putler’s regime is an ardent promoter of state terrorism for several years now. Ask Georgia, Syrian rebels, Chechnya, etc. Quit legitimizing this KGB thug, please.