Ukrainian president says authorities can protect country and people amid crisis

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Ukrainian President Viktor Yushchenko has demanded that the government and the parliament immediately adopt a new draft of the state budget for 2009. He said this in a televised address to the Ukrainian nation in connection with the difficult economic situation in the country.

"This is the only way to change the situation," Yushchenko said. He said that the country's financial system is now fully misbalanced and state institutions are being destroyed due to the absence of funds. "All this, as well as the government's attempts to take control of the National Bank might trigger an invisible inflation and result in a social disaster," he said.

The situation is being complicated by the gas agreements that are unprofitable for Ukraine, Yushchenko said. "In 2009, Ukraine must pay for gas UAH 25 billion more than it paid last year, however, Naftogaz of Ukraine's proceeds from transit services will remain unchanged at the level of 2008.

Nevertheless, the contracts have been signed and they should be observed," he said.

"The premier minister certainly knows that it is possible to receive additional funds needed to make payments for gas only through the domestic market and via a rise in prices for consumers," he said.

Yushchenko said that the government had not collected even a half of taxes and duties expected in January 2009. "The reason is the same. The budget is unrealistic," he said, referring to estimates by Finance Minister Viktor Pynzenyk. "Prime Minister Yulia Tymoshenko bears full responsibility for the economic situation, the disruption of the budget process and the destruction of the banking system, in accordance with the constitution," he said.

UKRINFORM