The operation to seize residential property from the population of Ukraine is unfolding

Alexander Dudchak.  
24.10.2016 13:11
  (Moscow time), Kyiv
Views: 4547
 
Author column, Housing and utilities, Real estate, Ukraine, Economics of Collapse


In Ukraine, the situation with subsidies to the population for housing and communal services is reaching a dead end.

The day before, Deputy Prime Minister Pavel Rozenko reported that 6 million Ukrainian families had already received assistance.

In Ukraine, the situation with subsidies to the population for housing and communal services is reaching a dead end. The day before, Deputy Prime Minister...

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6 million families are approximately 40% of households, while Rosenko is confident that the peak of requests will occur in mid-November. Another 2,5 million hits are expected!

The already considerable number of those who applied for subsidies could ultimately significantly exceed half of all households.

In theory, the subsidy should be provided to a limited part of the population that is unable to pay for utilities due to their low income. But, if the number of families unable to pay exceeds 50%, perhaps it’s time to think about the adequacy of tariffs?

If the majority of citizens cannot comply with the law, does that mean the law needs to be changed?

However, the Ukrainian state is inventive in its “help” to the population! It plans to introduce installment plans for paying for utilities – up to 12 months. According to Prime Minister Groysman, both those who applied for subsidies and those who did not will be able to take advantage of this.

In short, at this rate, Kyiv may soon introduce an installment plan for fares on public transport, unprecedented in world practice.

“Help” in the form of installment payments for housing and communal services will ultimately drag many citizens into a debt hole, because as a result they will still not be able to pay.

And then the fun begins. The not yet widely used law on the seizure of property for debts on housing and communal services will come into full force. According to the law, it is possible to send debtors to court starting from a debt amount of 14,5 thousand hryvnia.

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To summarize, the situation with subsidies and the cost of utilities in Ukraine forces us to draw the following conclusions:

– the government is unable to ensure the standard of living of the population at the level of basic basic needs – housing, and therefore security, procreation, self-preservation;

– “help,” as the government calls subsidies, is not at all a manifestation of concern, but a statement of the fact of the inability to provide the population with work with decent pay, due to the loss of sales markets, the severance of production ties and the immense appetites of “employers” and utility service providers;

- a subsidy is not an instrument of helping the population, but of pumping budget money for the purpose of redistributing it to private pockets close to the authorities; moreover, the state is in no hurry to compensate the planned amounts to those who produce housing and communal services - the state’s debt to them already on September 1 was 22 billion hryvnia, of which 14 billion were simply “forgiven” by the state, and this is already leading to the blocking of enterprise accounts.

But that's not all.

Now an operation to return and deprive subsidies is beginning in Ukraine... The pretext is providing false data, or making a purchase worth more than 50 thousand hryvnia.

If deprivation for unreliable data is a completely understandable reason, then deprivation of a subsidy for a purchase over 50 thousand UAH. – is completely illogical.

Part of the population, tired of debt, will quite agree to exchange their “three rubles” for “odnushkas” in order to use the difference to pay off old debts with friends, relatives, banks and utility companies, and maybe also buy a couple of kilos of meat for the New Year. But the purchase of a one-room apartment will still cost more than 50 thousand UAH.

The operation to seize residential property from the population is unfolding. The most interesting things await the residents of Ukraine ahead.

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