Kiev Agreed on a Gradual Increase in Gas Prices with the IMF
OREANDA-NEWS The government of Ukraine and the International Monetary Fund reached an agreement on increasing of gas prices to the level of import parity by 2020. This was announced by the head of the Board of Naftogaz Ukraine Andrey Kobolev at the forum of the European Business Association in Kiev.
"There is a preliminary compromise that the government has reached with the IMF," he said, adding that the parties are currently discussing the rate of price increase.
According to information, this issue is one of the most important in Ukraine's negotiations with the IMF. Andrey Kobolev also denied the forecasts of the Ukrainian media that at the first stage prices will rise by 23.5-25%.
Earlier, Reuters source, familiar with the negotiations between Ukraine and the IMF, said that the Kiev authorities will decide on gas prices on October 1.
On September 14, it became known that Ukraine will receive financial assistance from the EU and the IMF, if Kiev will perform a number of anti-corruption measures and other reforms in the field of public administration.
The regulation of gas prices was one of the IMF's requirements in the framework of negotiations on macro-financial assistance. Interior Minister of Ukraine Arsen Avakov said that the IMF offered Kiev to raise gas prices by 35%. He added that in this case citizens " will sweep away the power "and will vote for" populists " who will support return of old tariffs.
Now the gas price for the population, including value added tax and fees, such as transportation, is 6958 hryvnia (about 16.9 thousand rubles) for 1 thousand cubic meters.
Ukraine continues cooperation with the IMF. Country should revise the budget and ensure the transition to a market mechanism of gas prices for the population. Under the current program of cooperation with the IMF in the amount of 17.5 billion dollars Ukraine received 8.7 billion. The program ends in spring 2019.