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Cabinet liquidates State Reserve and creates State Reserve Management Agency

The Cabinet of Ministers has liquidated the State Reserve Agency and created the State Reserve Management Agency.

This is stated in the message of the Ministry of Economy, the Ukrainian News agency reports.

"The Cabinet of Ministers liquidated the State Reserve, which we inherited from the Soviet system and proved incompetent in managing the state material reserve. Instead, the government created a new central body of executive power that implements state policy in the field of state reserves - the State Reserve Management Agency of Ukraine. Its functioning is provided for by the law On State Reserves," the message states.

It is noted that the State Reserve Management Agency will be responsible for managing the state material reserve, which does not include the mobilization reserve.

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"It is about the creation of stocks of material values, consisting of stocks of raw materials, fuel and energy, material and technical resources, industrial and food products, medicines and medical products, intended for use in peacetime, as well as in a special period. Procurement of material values of the state material reserve will take place exclusively at electronic auctions. The new body will also form a nomenclature of material values ​​and norms for their accumulation in accordance with the new procedure approved by the Cabinet of Ministers," the message states.

The order introduces new mechanisms for the formation and revision of the nomenclature of material assets of the state material reserve and mobilization reserve, the creation of state reserve stocks, their sale and release.

At the same time, the management of the mobilization reserve, including the sale of de-armored material assets, will be carried out by other state bodies determined by the law On State Reserves.

"Previously, the nomenclature of material assets of the state reserve did not meet the strategic needs of the state. Some material assets were overdue. And in general, the management of stocks was ineffective and their number was gradually reduced. Thanks to these changes, we are moving from the outdated "Soviet" storage system to modern mechanisms for the formation and storage of stocks state reserves," said First Deputy Prime Minister - Minister of Economy Yuliia Svyrydenko.

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The government also approved the procedure for maintaining a single register of state reserves and providing access to it.

"The implementation of this register strengthens the control and responsibility of both responsible custodians, reservists and balance-keepers of state reserves. From now on, all information about the circulation of material values ​​will be reflected in a single register of state reserves. It will be a secure automated database to track the state of material values ​​at every stage - sealing, storage, refreshment, release, etc.," added Svyrydenko.

As the Ukrainian News agency earlier reported, the Cabinet of Ministers previously announced its intention to liquidate the State Reserve.

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