The undersigned NGOs draw the Government’s attention to the unacceptable situation with regard to the Public Broadcaster’s financing in Ukraine.
The National Public Television and Radio Company of Ukraine (UA:PBC), represented by UA:Pershyi, UA: Kultura TV channel, 24 regional branches and three channels of Ukrainian radio and a digital platform finds itself in a situation of not having sufficient funds to develop and produce quality content due to underfunding, for the third time since its establishment in January 2017.
On April 13, 2020, the Verkhovna Rada of Ukraine adopted amendments to the state budget that, among other things, reduced the funding of public broadcasting by UAH 178 million amounting to UAH 1.53 billion – UAH 500 million less than the amount provided for by law (2.1 billion in 2020).
However, the 13% cut in funding does not take into account repaying the debt on the part of the state-owned company, UA:PBC’s predecessor to Euronews S.A. in the amount of EUR 10 million in court and enforcement fees (a total of approximately UAH 350 million). It is this former NTU’s debt to Euronews, unresolved since 2015 and originally arisen due to populist instructions of Azarov’s government, that resulted in the seizure of the accounts on February 28, 2020. This fact has put UA:PBC in danger of complete cessation of operation, since the company cannot make payments for broadcasting and contractual obligations.
For the third year in a row, UA:PBC is required to make qualitative changes, increase ratings and be more influential, whilst the company’s funding does not exceed 55% of the funding provided for by law. No investments in re-equipment of studios, equipment or renovation of premises have been made for decades. Upon settling its debts with Euronews, the company’s budget will be 55%, i.e. exactly the same as in previous years. This will mean that the Public Broadcaster will be left to survive, not develop. All the planned projects will be frozen (put on hold) for at least a year.
Public broadcasting is a source of reliable and timely information that society needs, especially in times of crisis that may pose a threat to democracy. With the onset of the COVID-19 pandemic, demand for the public service broadcasters’ product is growing in all European countries, and Ukraine is no exception. High-quality, balanced and reliable news and explanations are in demand, especially when the people are alone with the fears for their lives and the lives of their loved ones. And the very task of the Public Broadcaster is to provide such products. Creating quality information products requires adequate funding.
Despite the fact that UA:PBC has to repay the debt as soon as possible, the issue of financing can still be resolved. Furthermore, for three years, the Swiss National Bank has kept 15 million euros as collateral for Ukraine’s Eurovision Song Contest. Repayment of the debt by UA:PBC will unblock the funds returning them to Ukraine.
We call on the Government to make up for the amount of debt repayment to Euronews after receiving the funds from the Swiss bank accounts. And by doing so, to provide funding in the amount of UAH 1.53 billion that could be used in full to ensure proper functioning and sustainable development of UA:PBC, supporting the development of interesting content and the planned software changes.
Centre for Democracy and Rule of Law (CEDEM)
NGO Ukrainian Media and Communication Institute
NGO Regional Press Development Institute
Souspilnist Foundation
NGO Internews Ukraine
Human Rights Platform
Pylyp Orlyk Institute for Democracy
Maksym Skubenko, analyst
