Zemlyansky said that the abolition of market formulas for energy prices will jeopardize the program with the IMF

The allocation of Ukraine a new tranche of the International monetary Fund may be in jeopardy due to the initiative of the Antimonopoly Committee of Ukraine (AMCU) on the partial abolition of the market formula of pricing energy. This was stated in the comment to the edition «Business capital» Director of energy programs of the Center for world economy and international relations NASU Valentyn Zemlyansky.

According to the Agency «RBC-Ukraine», AMCU invited the Cabinet to change the current method of calculating gas prices, which is tied to its value on the NCG hub in Germany.

«This initiative would look extremely ridiculous in the context of international obligations of Ukraine. Until recently, the government acted in the logic, which called for market pricing. Who does not «pull» the market price – should receive subsidies. In the same logic went, and the formula «Rotterdam plus». Both were considered on the market, according to market indexes», – said V. Zemlyanskyy.

This is the principle of pricing is contained in the Memorandum with the IMF, said the expert.

«In fact, if we are talking about some continuation of the cooperation, it is natural that in the case if a pricing principle will be revised accordingly, and with the IMF will be nothing to talk about, because it is the failure of those structural beacons, which were spelled out in the Memorandum, he said. – I think I have played this combination before the visit of the mission (IMF. – «GORDON») that you see, all of our Executive authorities that offer this option as one of the. But it will obviously cause a very negative reaction from the IMF point of view, just the implementation by Ukraine of its international obligations».

Zemlyansky added that the Antimonopoly Committee is not empowered to address the issue of pricing.

«It is not their competence, the AMC is responsible for determining gas tariffs for the population. It is abuse of power. Then suddenly, the AMC is engaged in the sphere of activities of the Cabinet and the Ministry of energy? It is a question of the Ministry of energy, to the NAK «Naftogaz Ukraine», which made their proposals, it is a matter for the Cabinet, whose decision should determine the level of gas prices. But not to the AMC,» – says Valentin Zemlyansky.

First Deputy managing Director, International monetary Fund David Lipton on the evening of 12 September arrived in Kiev. He met with President of Ukraine Petro Poroshenko. At negotiations it was a question of the perspectives for the implementation of the Memorandum of economic and financial policies in the light of the provision of the next tranche of Ukraine in the framework of the extended financing facility. Lipton will be in Kiev until September 14.

Zemlyansky said that the abolition of market formulas for energy prices will jeopardize the program with the IMF 13.09.2017

Сентябрь 13th, 2017 by
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