This paper undertakes a multivariate analysis of the household-level determinants of poverty using the first large longitudinal micro data set for Ukraine – the Ukrainian Longitudinal Monitoring Survey (ULMS) for the year 2004. Important correlates of poverty are identified, and causality is attributed to them where possible with the use of the models that estimate welfare, poverty, and poverty gap based on an absolute and a relative poverty lines. Results of the study indicate that among significant household characteristics that make poor people poor are large numbers of household members and children in a household and employment of the household head at a private agricultural enterprise. Significance of high education attainment of the household head, his/her use of computer, and such attitudes as life and job satisfaction is shown. Minimum amount of transfers needed to eradicate extreme poverty by half in observance of the first Millennium Development Goal (MDG) amount to 37.8 UAH per poor person per month, which in total amounts to approximately 126 million UAH.