PLENARY MEETINGS OF THE VERKHOVNA RADA OF UKRAINE OF THE SEVENTH CONVOCATION WERE HELD ON JUNE 19, 2014.

At the beginning of the plenary session, the people’s deputies considered the draft resolution on amendments to the Resolution of the Verkhovna Rada “On the Committees of the Verkhovna Rada of Ukraine of the Seventh Convocation” (re election of committee members). 

Parliamentarians adopted the draft resolution as a basis and in entirety by 235 votes.

Chairman of the Verkhovna Rada of Ukraine drew attention of the people’s deputies to the fact that “extremely important, strategically important issues for our state will be further considered, particularly, governmental proposals pertaining to Ukraine’s energy safety.” He informed that the Prime Minister of Ukraine Arsenii Yatseniuk is present in the session hall.

The Chairman granted the floor to the Prime Minister A.Yatseniuk, who presented the draft law on amendments to several laws of Ukraine on reforming the management system in a Single Gas Transportation System of Ukraine (Reg. No. 4116a).

A.Yatseniuk noted that the Cabinet of Ministers regularly informs the Verkhovna Rada about the developments on the state’s energy market.  

The Prime Minister briefed on the measures the government takes.

Commenting on the steps to be taken, Head of the Government reminded that nowadays gas transportation via the territory of Ukraine aren’t based upon the agreement between Ukraine and the EU, but are carried according to the agreement between Naftogaz and Gazprom. “We consider this scheme should be changed and the point of pumping gas should be replaced from the western border of Ukraine to the eastern one,” he said.

Arseniy Yatsenyuk stressed the need to take the decision on upgrade and joint exploitation of Ukraine’s GTS. According to him, to stick to the obligations assumed by Ukraine, being a country-signatory to the Energy Charter Treaty and a participant of the European Energy Community and executing the Third Energy Package, the Government suggests adopt a number of decisions called to create a new model of functioning the energy market.

In accordance with the governmental bill, the Ukrainian GTS remains the state’s property, he said. Ukrainian gas storages will also remain in the state’s ownership. The Head of Government emphasized, pursuant to the requirements of the Third Energy Package there would be set up a company operator with a controlling stake belonging exceptionally to the Ukrainian state. According to him, exceptionally gas transportation companies of the EU member countries can own 49 % of the abovementioned company, however, they must be participants of the European Energy Community, and the U.S.A. on conditions that such energy companies have relevant certification.

The Prime Minister emphasized that upholding this draft law would enable modernization and investing into Ukrainian gas transportation system, improvement of capitalization of Ukrainian GTS, which remains complete state property: “It will give a chance to have new conditions of Russian natural gas transportation, to cease erection of the South Stream and direct all the amounts planned to send through the South Stream along the Ukrainian gas transportation system, as the EU member countries will be particularly interested in that,” the speaker noted.

Head of the Government stressed that the bill is a real step ahead in forming Ukrainian energy independency.

The Prime Minister reported on one more bill from the energy package of bills, registered under No. 4117a.

Arseniy Yatsenyuk emphasized that the governmental bill on a special period in fuel and energy complex aims at “providing an opportunity for the executive authorities to manage the energy market under extreme conditions in order to ensure people and enterprises with minimal amounts, that will enable to keep the country afloat”. The draft law stipulates for an opportunity to introduce a special state on energy market in case there is the threat to flawless energy supplies of Ukraine or the country faces suspension of natural gas deliveries or any other energy products.

The speaker emphasized that the bill on a special period in fuel and energy complex is aimed at “providing an opportunity for the executive authorities to manage the energy market under extreme conditions in order to ensure people and enterprises with minimal amounts that will enable to keep the country afloat”.

“These two laws appear the first real steps over the last 20 years that lead to establishing energy independence of the country. The steps capable to ensure that Ukrainian energy and gas transportation system could become a guarantor of flawless transit process and generating incomes in the Ukrainian state,” he said.

The people’s deputies did not uphold inclusion of the bills registered under No. 4116а, 4117а and 4117а-1 into the agenda.

The people’s deputies included the bill on amendments to several laws of Ukraine on reforming the management system in a Single Gas Transportation System of Ukraine (Reg. No. 4116a) into the agenda. 

Oleksandr Turchynov noted that this issue will not be discussed at present in order to allow for its serious discussion in the Committee, as well as with representatives of the public and in order to allow the government ensure consideration and explanation of this important issue.

The Chairman put to vote the issue on inclusion of the bill, registered under No. 4117a, into the agenda.

The people’s deputies placed the bill on the agenda by 240 votes at the second attempt.

Oleksandr Turchynov announced consideration of staffing issues. He informed that prior to consideration of these issues, factions of the Party of Region and the Communist Party of Ukraine ask for a break to hold consultations.

A break was announced. 

After the break, Oleksandr Turchynov announced consideration of staffing issues.

The Chairman informed that the issue of appointing the Prosecutor General will considered first of all. He reminded that this issue is considered in the presence of the President of Ukraine and invited the President of Ukraine Petro Poroshenko to the session hall.

The President of Ukraine Petro Poroshenko noted that he came to initiate a working process of fruitful cooperation between the Head of the State and the Verkhovna Rada.

Petro Poroshenko reminded that during early elections of the President, almost 55 per cent of the citizens of Ukraine upheld his programme. He again emphasized his loyalty to the parliamentary-presidential republic.  "The country does not need any power usurpation today. Current version of the Main Law of the country empowers me as the President with sufficient authority, including staffing authority, necessary for meeting promises given to the Ukrainian people," the Head of State noted.

The President of Ukraine asked the Verkhovna Rada to agree to appoint the First Vice Prime Minister Vitalii Yarema the Prosecutor General of Ukraine.

Petro Poroshenko stressed the crucial role the Prosecutor General’s Office plays in fighting corruption. 

Petro Poroshenko asked the people’s deputies not to defer adoption of a new law on the prosecutor’s office and expressed readiness to participate in its discussion in order to adopt a new European law on the prosecutor’s office that will allow make the Prosecutor’s Office a truly European body.

The Chairman put to vote the draft resolution on appointing V.H.Yarema the Prosecutor General of Ukraine by the President of Ukraine.

The people’s deputies agreed to appoint V.H.Yarema the Prosecutor General by 329 votes.

The newly elected Prosecutor General V.H.Yarema noted in his speech that he “will do his best to ensure peace, calm and the rule of law on the territory of our country in order to protect people against criminal encroachment.”

V.H.Yarema was dismissed form the post of the first Vice Prime Minister by another resolution.

The Chairman announced consideration of the draft resolution on dismissal of A.Deshchytsia from performing the duties of the Foreign Affairs Minister.

The Verkhovna Rada voted for the respective resolution by 319 votes.

The Chairman informed that the President of Ukraine made a submission to appoint Pavlo Klimkin the Foreign Affairs Minister. 

The people’s deputies upheld the resolution by 335 votes.

The newly elected Foreign Affairs Minister noted that he “will do everything possible to make Ukraine’s foreign policy coherent, consolidated and proactive, directed at protection of Ukraine’s national interests.” 

P.Klimkin took an oath of a member of the Cabinet of Ministers.

The Chairman informed about the proposal of the President of Ukraine to dismiss Kubiv Stepan Ivanovych from the post of the Head of the National Bank and appoint Valeriia Oleksiivna Hontareva to the abovementioned post.

Prior to consideration of the issue of appointment of the Head of the National Bank factions of “Batkivshchyna” and “Svoboda” addressed the Presiding to announce a break to hold consultations.

Oleksandr Turchynov announced a break.

After the break, the Chairman announced that the President of Ukraine made a submission to dismiss S.Kubiv from the post of the Head of the National Bank.

The people’s deputies upheld President’s submission by 302 votes.

Oleksandr Turchynov informed that the President of Ukraine made a submission to appoint V.O.Hontareva to the post of the Head of the National Bank of Ukraine.

The Verkhovna Rada adopted the draft resolution on appointing V.O.Hontareva to the post of the Head of the National Bank of Ukraine by 349 votes.

The newly elected Head of the National Bank V.Hontarieva told about herself.

The President of Ukraine thanked the people’s deputies for “such a beginning of cooperation.”

Oleksandr Turchynov announced that the Prime Minister made a submission to the Verkhovna Rada to dismiss O.V.Riabchenko from the post of State Property Fund of Ukraine Chairperson. 

The people’s deputies upheld the submission of the Prime Minister of Ukraine by 320 votes.

Oleksandr Turchynov granted the floor to the Finance Minister Oleksandr Shlapak, who reported on amendments to the Tax Code of Ukraine re capital income taxation (Reg. No. 4117a).

Concerning the progressive tax scale, only citizens who have earned over UAH 500 thousand should be taxed", he claimed.

O.Shlapak informed that the bill contains two more norms, one of them being taxation of collective investment institutions. And finally the government has decided to meet the needs of the business and cancel double taxation on income tax when paying dividends", he said.     

People's deputies included the bill into the agenda and adopted it as a basis with 249 votes.

The draft law on amendments to article 43 of the Criminal Procedure Code of Ukraine (re strengthening guarantees of implementing independent justice) under Reg. No. 4973 was included into the agenda.

After the discussion, the bill was adopted as a basis (218 votes in favour).

MPs included into the agenda and adopted as a basis the draft law on taxation and customs control in the free economic zone of Crimea and on peculiarities of exercising economic activity on the temporary occupied territory of Ukraine under Reg. No. 4032а (241 votes in favour). 

People's deputy Iryna Lutsenko reported on the draft law on amendments to the Criminal Code of Ukraine (re responsibility for financing separatism) under Reg. No. 4822. 

I.Lutsenko addressed people's deputies with a request to uphold including the bill into the agenda.

The bill was adopted as a basis the in entirety with 238 votes.

MPs considered the draft law on transferring credit liabilities in a foreign currency to a national one (Reg. No. 4895), and an alternative bill (Reg. No. 4895-1). Their authors, people's deputies M.Rudkovskyi and M.Opanashchenko informed about content of the bills.  

A discussion on these bills was conducted in the session hall.

Summing up the discussion, Oleksandr Turchynov claimed it is necessary to think over results of the actions and suggested postpone adopting the decision until Tuesday, July 1. 

However, authors of the bills did not uphold the suggestion.

The Chairman put both bills to the vote. The bills were not upheld.  

Oleksandr Turchynov instructed the Cabinet of Ministers, the National Bank, the specialized committee, and the working group to prepare a single law.

The Chairman announced people's deputy R.Bohdan entering deputies' faction "Batkivshchyna", and adjourned the morning meeting.

At the beginning of the evening meeting, Oleksandr Turchynov informed about resignation of I.Kaletnik and R.Skarboviichuk from the faction of the Communist Party of Ukraine. 

Minister of Finance Oleksandr Shlapak informed about the draft law on amendments to appendix No. 3 to the Law of Ukraine "On the State Budget of Ukraine for 2014" (re defence capacity of the state) under Reg. No. 4078а.  

Chair of the Committee on Budget Yevhenii Hiellier reported on the Committee's decision to recommend that the Verkhovna Rada adopt the bill as a basis and in entirety.

People's deputies upheld the decision with 268 votes.

Minister of Finance Oleksandr Shlapak reported on another governmental bill – on amendments to the Tax Code of Ukraine re specification peculiarities of tax liabilities of corporate income tax and VAT in case of applying tax compromise (under Reg. No. 4930). 

First Deputy Chair of the Committee on Taxation and Customs Policy Oksana Prodan informed about the Committee's decision to recommend that the Parliament adopt the bill as a basis.

People's deputies upheld the bill in the first reading with 262 votes.

MPs considered and adopted as a basis the draft law on amendments to the Law “On the Single State Demographic Registrar and Documents Testifying Citizenship of Ukraine, Certify the Identity or a Special Status” re digital fingerprints (Reg. No. 4991).  

The refined bill on ensuring rights and freedoms of citizens for internally displaced persons (Reg. No. 4998), and the bill "On Legal Status of Foreigners and Stateless Persons" re grounds for foreigners and stateless persons staying on the territory of Ukraine (Reg. No. 3874) were adopted as a basis and in entirety.    

The Verkhovna Rada adopted as a basis the draft law on amendments to the Family Code (re mandatory duty to aliment a child on the part of persons deprived of parental rights) under Reg. No. 2548, and the draft law on amendments to article 10 of the Law of Ukraine "On the status of war veterans and guarantees of their social protection" (re workers of law–enforcement authorities participating in the anti-terrorist operation) under Reg. No. 4084а.   

Peopel's deputies considered the bill on amendments to several laws of Ukraine (re workers of secretariat of the National Tripartite Social and Economic Council) under Reg. No. 2449a.  

First Deputy Chairman of the Committee on Social Policy and Labour Yaroslav Sukhyi reported on the bill. He suggested apply the Law "On the State Service" to posts of the state service in the secretariat of the National Tripartite Social and Economic Council, and regulate the issue on referring these posts to respective groups and subgroups of the state service posts.  

During the discussion, people's deputy Iryna Sekh informed about death of nearly 20 military men. She said that "Svoboda' faction demands tomorrow to grant a hearing to the acting Minister of Defence regarding the reason of military men dying in the east every day. 

Oleksandr Turchynov upheld this suggestion.

Following the results of the voting, the bill on amendments to several laws of Ukraine (re workers of secretariat of the National Tripartite Social and Economic Council) was not upheld (150 votes in favour).

The Chairman adjourned the evening meeting.