01 May 2017

What Will Change for Ukrainians Starting in May: New Developments in the Law

Starting May 1, Ukraine will update its subsidy system, raise social standards, and complete the electronic filing process for officials submitting declarations to the registry for the first time

Starting in May, the subsistence minimum will be 1,624 UAH. For able-bodied individuals—1,684 UAH; for disabled individuals (minimum pension)—1,312 UAH—an increase of 65 UAH. 

The following types of payments have been increased: minimum pension amounts and supplements for extra years of service; minimum pension payments; state social assistance for the care of war invalids; increases for war veterans and their family members; increases for victims of Nazi persecution; pensions for special services to Ukraine; and a supplement for blood donors.

Social standards for heat, gas, and electricity will be reduced

Starting May 1, social standards for the use of housing and utility services will be revised. The Cabinet of Ministers adopted this decision in February.

Specifically, the social standards for the use of: thermal energy for centralized heating (heat supply) by subscribers whose residential buildings are equipped with building- and/or apartment-level metering devices will be revised: from 0.0548 Gcal to 0.0431 Gcal per 1 square meter of heated area per month during the heating season; electricity for individual heating: from 65 kWh to 51 kWh per 1 square meter of heated area per month during the heating season; natural gas for individual heating: from 5.5 cubic meters to 5.0 cubic meters per 1 square meter of heated area per month during the heating season.

The adjustment coefficients for calculating the consumption of electricity, natural gas, and other types of fuel for heating in multi-story buildings will also be revised.

The social norm is established for citizens who, in accordance with the law, are eligible for subsidies to pay for housing and utility services.

Updated subsidy system

Starting May 1, an updated housing subsidy program will take effect in Ukraine. Subsidies for the coming year will be reassigned. The amounts will also be calculated for the summer period and, starting in October, for the new heating season.

Only those who rent housing and have experienced changes in their family composition will need to resubmit documents to apply for assistance. For the rest of the subsidy recipients, the recalculation will be performed automatically, without the need to reapply.

The social norm for those unable to work is increasing. This will affect pensioners, people with disabilities, and others who are not working for objective reasons. If one or two people unable to work live in a household, the social norm used to calculate their subsidy amount will increase from 49 square meters to 75 square meters.

Starting in May, those living in a summer cottage will be able to apply for subsidies.

Changes will also take place regarding the heating season. Previously, the heating season subsidy was granted from October 1 to April 30. It was calculated based on the decision of local government bodies or executive authorities regarding the start and end dates of the heating season. In 2017–2018, the link to such decisions remains in place for users of centralized heating. For those with individual heating, the subsidy is calculated from October 15 to April 15.

On May 1, a government decision regarding the monetization of a portion of the saved subsidies will take effect.

Cash payments are planned for energy-efficient households—equivalent to the cost of 150 kilowatts of electricity saved, if this resource is used for heating, or 100 cubic meters of gas.

Subsidies recipients who have maintained an energy-efficient household will need to submit an application to the local social protection office between July 1 and September 1 to receive the funds; this application will serve as the basis for the payment of the cash reward for energy efficiency.

Each subsidy recipient can track their savings on their utility bill or by contacting their gas or electricity provider, if these resources are used for heating.

Opening a bank account, as well as selecting the authorized banking institution through which social assistance and pension payments are made, or at Ukrposhta branches, must be done by the subsidy recipient independently. The bank account must already be open at the time of application submission.

The cost of gas for industry will decrease

The cost of gas for industry will decrease by 3% in May. Thus, with advance payment, it will amount to 7,456.8 UAH per 1,000 cubic meters (including VAT). If paid within the month, the price will be 8,282.4 UAH per 1,000 cubic meters (including VAT).

Deadline for new filers to submit e-declarations

Officials filing for the first time were required to submit their electronic declarations by May 1. The relevant changes were introduced in March of this year.

As of the beginning of May 1, there were 1,217,868 annual declarations in the registry. Of these, 127,760 were for 2015, 1,089,668 for 2016, and 435 for 2017. Meanwhile, as of the evening of April 30, the e-declaration registry was operating without any disruptions, according to a notice on the website. As a reminder, such a problem arose as the April 1 filing deadline approached.

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