Ukraine's Finance Ministry has drawn up a plan to switch to using money to pay subsidies, which will have three phases, Deputy Finance Minister Serhiy Marchenko has said.

He wrote in his article for Dzerkalo Tyzhnia. Ukraine (ZN.UA) weekly that the first phase will include monetization of payments of subsidies at the level of service providers. During the second phase the system for monetization of subsidies for households will be prepared (the required infrastructure, the unified register and database of subsidy recipients will be created, subsidy recipients will be verified). During the third phase subsidies for households will be monetized.

"Now we are at the first phase, which will introduce monetization of subsidies for service providers next year," he said.

The amendments are intended to switch to transparent and timely payments of subsidies using money in relations between the state and service providers.

The deputy minister said that after the 2017-2018 heating season, it is planned to transfer part of the payments to the usual current accounts of enterprises that are service providers. This step will provide another prerequisite for the switch to a free market. It will create opportunities for enterprises that want to work with the population and open the way to direct transfers of subsidies to households that can independently pay for utility services.