Verkhovna Rada of Ukraine passed the draft law №2151 which enables the transfer of drug procurement to the international organizations. This draf law provides for the abolition of 7% VAT and 5% customs duty on drugs that will be procured by the international organization for the state budget. Together with the draft law № 2150, which was passed by the Parliament on March 19, 2015, the saved funds on the drug procurement through international organizations will reach 42%. Additionally around 1.5 million Ukrainians will receive treatment and vaccination due to the savings.
“These draft laws are the opportunity to receive quality treatment for 1.5 million of Ukrainians on time. We’ve put a lot of effort into the development and adoption of these laws. Now the responsibility is on the Ministry of Health, they have to start working immediately so that adult patients and children receive medicines and vaccines “ — insists Dmytro Sherembey, Chairman of CF “Patients of Ukraine”
We would like to remind you that CF “Patients of Ukraine” appealed to the heads of all parliamentary fractions of Ukraine in order to support this draft law and eliminate the last barriers on the way to drug procurement by international organizations.
“The adoption of the bill №2151 removed the last obstacle to the transfer of medicines procurement to international organizations – says Olga Bohomolets, Head of the Committee on Health of Verkhovna Rada of Ukraine. – Voting for this bill was an indicator of the Ukrainian parliamentarian’s unity in order to change the country for the benefit of patients and eliminate corruption schemes that existed during medicines procurement for public funds.”
However, according to Hanna Hopko, Head of the parliamentary Committee on Foreign Affairs: “These laws will work only as a “package” because since adoption of the first law №2150, we have “fought” for the enactment of draft law №2151. International organizations which will be supplying medications for Ukrainian citizens have to be assured that Ukraine is civilized and serious partner which is ready for transparency which international institutions are providing. And that Ukraine is ready to fight corruption in public procurement.”
From now on medications for Ukrainian patients for the next 4 years will be procured by 6 international organizations: WHO, UNICEF, IDA Foundation (Netherlands), Crown Agents (UK), Partnership for supply chain management (PFSCM) (USA), Global Drug Facility (GDF) (Switzerland). According to its provision international non-profit organizations cannot be taxpayers and VAT.
For now transferring of medicines procurement applies to four treatment programs: AIDS, tuberculosis, hepatitis, and vaccination. The decline in price will be possible because of usage of international packaging, wholesale international prices and the abolition of VAT and import duty.
Public activists and parliamentarians expect that procurement function will be transferred to the international organizations in 6 weeks. First deliveries will start in summer 2015.