Kiev: IMF puts ultimatum to raise gas price for the population to 30% immediately, and then to 20%-every six months

The International Monetary Fund has insisted on the need to increase the prices of natural gas for the population of Ukraine for 30% and for enterprises of communal heat energy-at 58%. Referred to in the letter from the Permanent Representative of IMF in Ukraine by Max Al′era, the first Deputy Prime Minister of the Ukrainian Government to Andrey Klûevu.

The letter notes that the current energy policy of Ukraine is “unacceptable”. “Low price of gas used by utilities and undermined the financial position of the finning and sector-level management, incentives for energy efficiency improvements and investment, as well as provides a disproportionately high grants for largest gas consumers,” the paper announced 9 February news agency UNIAN. However, in the view of the IMF, even after such a price increase and CTV will pay less than 25% of the cost of imported gas and, consequently, the Government of Ukraine will be further increased tariffs. “The Government should announce a timetable for a further 20% increase of tariffs for gas, which will take place twice a year, before the time until full recovery of the cost resource,” experts say.

As reported BakuToday, at the end of January, the President of Ukraine Viktor Yanukovych stated that in spite of the high price of gas for Ukraine, the authorities did everything to its price for the population stagnated. “The IMF, for example, sought to increase tariffs for natural gas for the population and for heating communal energy services. This means increasing prices for flats at more than 100% and of course the tariffs for gas consumption, thereby compensate for the shortfall. We understand that such a burden on the population is excessive, and it didn’t go “, said the President.

27 January, Vice Prime Minister of social policy of Ukraine Sergey Tigipko stated that the International Monetary Fund has not yet intend to grant Ukraine regular tranche. “The delegation of Ukraine this week, was in Washington for talks with IMF leadership and said that a final decision of the parties in these negotiations failed to come,” said Tigipko. “The main issue under discussion in the negotiations was an IMF demand on the rise of tariffs for natural gas for the population, which was to run Ukraine within the framework of cooperation with the Foundation. We do not intend to raise these rates and the IMF presented its proposals, “said the representative of the Government. “As a result, have agreed that we will continue these negotiations through week 2-3. Both sides are prepared to do, “said the Deputy Prime Minister.

 

 


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