IMF urges Ukraine to set market prices for gas – Longman

Ukraine needs to allow the market to set gas prices, said March 30 the head of the International monetary Fund in Ukraine Jost Ljungman, according to Reuters.

According to Longman, the Ukrainian authorities can still carry out the proposed IMF reforms before presidential and parliamentary elections in 2019.

Credit program of the IMF to Ukraine expires in March 2019.

Longman said that «it is important that gas prices and utility tariffs is no exception – is determined by the market, in accordance with the reforms that were introduced in 2016».

He also said that was «a major breakthrough in the reform process in Ukraine over the last few years.»

The head of the Ukrainian representative office of the IMF is not reported as a decision of the Ukrainian government affected the provision of the following tranche. According to him, IMF has made it clear that the fulfillment of the promises on bringing gas prices to market levels is an essential condition of funding.

The Cabinet of Ministers of Ukraine at its meeting on 28 March, extended the special liabilities of the company «Naftogaz Ukraine» for gas supplies for the population and heating utilities with no change in rates until June 1. Thus, the price of gas for the population will remain at the same level.

From 1 April 2017 in Ukraine for the population and heating utilities operates the gas price set in the amount of 6957,9 UAH per 1000 m3 (including VAT).

In July 2017 the Naftogaz of Ukraine has proposed to increase the rate of almost 19%. Prime Minister Vladimir Groisman said that the price of gas for the population, on the contrary, will be reduced. In the end, the tariff is not changed.

Reuters reported 6 October 2017, Ukraine will offer the IMF a new formula for calculating gas prices for the population, according to which the price will remain unchanged until July 2018.

18 December 2017, the IMF said that the Ukrainian authorities should adjust the price of natural gas on the domestic market to the level of import prices.

25 January 2018, the President of Ukraine Petro Poroshenko in an interview with Bloomberg said that government is ready to regulate gas prices, but did not specify details.

February 1, the IMF resident representative in Ukraine Jost confirmed Lungman requirements on settlement prices for gas in Ukraine.

2 February Prime Minister of Ukraine Vladimir Groisman said that in the current heating season the gas price for population in Ukraine will not raise. He noted that negotiations with the IMF concerning the settlement of the gas prices.

IMF urges Ukraine to set market prices for gas – Longman 31.03.2018

Март 31st, 2018 by
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