Kuchma Cabinet moves on economy (01/10/93)

Kuchma Cabinet moves on economy

by Dmytro Filipchenko

KYYIV - The Ukrainian Cabinet of Ministers issued the latest round of economic decrees on January 5. Minister of the Economy Viktor Pynzenyk, announced measures and plans concerning state enterprises, compensation for savings devaluation, export quotas, and state-owned buildings.

Mr. Pynzenyk, who appeared tired at a press conference following a three-hour presentation of economic plans before the Cabinet of Ministers, reported that in a week's time the government will review a provision that sets a deadline of July 1 for conversion of all enterprises in which the state has a 50 percent or greater stake from closed-stock to open-stock companies. All state-controlled companies whose net worth ranges from 20,000 to 1.5 billion coupons would undergo this conversion. Only officials of the Ukrainian State Property Fund would be legally empowered to form state stock companies.

In addition, another decree that will be reviewed by the Cabinet provides that state enterprises would "provide for their material and technical needs independently." This measure will abolish the practice of apportioning state resources to enterprises, and will institute a contract system to provide for the state's needs for industrial products, agricultural produce, services, research and development, introduction of new technology, and studies of environmental and social problems.

A compensation package was introduced for those whose savings have become devalued by inflation while held in bank accounts. Sums of up to 2,000 coupons will be increased by 200 percent.

Jurisdiction over all government-owned administrative and non-housing facilities was officially shifted to the Cabinet, and all powers of presidential representatives in this regard were abolished.

The final edict affirmed that "Ukrainian enterprises need not register with the government to engage in foreign trade," and cancelled tariffs on exports "within quotas," but did set out a new system of export licenses. It also reiterated the list of goods subject to quotas, which included electroconductors; rare earth, ferrous, and colored metals; cement; medical supplies; wool, linen and synthetic textiles.

| Home Page |