Klyuyev: Government of Ukraine is to intensify the process of import substitution

Cabinet of Ministers of Ukraine approved the State Program of development of domestic production, stated First Vice Prime Minister - Minister of Economic Development and Trade of Ukraine Andriy Klyuyev.

He said the program aims to improve the economic stability of the state through development of domestic production.

"We have in full capacity to intensify the process of import substitution. Ukraine has everything to increase our own production output, which is now being imported – it is a significant natural and resource, industrial, technological and labor potential. The key focus of economic policy of Ukraine is to expand the domestic market," said Andriy Klyuyev, the website of the Party of Regions says.

"We are to unite the macroeconomic tools, efficient industrial and agricultural policy in order to modernize production, to stimulate the rapid development of modern technologies and advanced technologies of the future," the First Vice Prime Minister emphasized.

He noted that Ukraine's accession to the WTO narrowed the possibilities to pursue a policy of protectionism in relation to domestic production; cooperation with CIS countries becomes more pragmatic, the domestic manufacturer faces serious problems due to activation of creating free trade area with the EU.

According to Andriy Klyuyev, along with the high dependence of the Ukrainian economy on imported energy, negative impact on the country's trade balance has also the import of cars, equipment, machinery and vehicles, the volume of which amounted to 12.7 billion dollars in 2010.

"There is potential for import substitution in all areas. This includes engineering, including - agricultural, chemical and light industries, production of medicines. There is significant potential for development in the aviation industry and defense industry. Also, Ukraine is obliged for the next 10 years to increase significantly the provision with energy of domestic production," noted the official.

Late July, Prime Minister Mykola Azarov charged the Ministry of Economic Development and Trade of Ukraine to develop a comprehensive program to support export and import substitution. And on September 12 Ministry of Economic Development submitted to the Government such a program, known as "State program of development of domestic production." The first phase of implementation covers the period of 2012-2015 years.