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20 Oct, 2018 05:50

Ukraine government hikes gas prices for population by quarter as part of deal with IMF

Ukraine government hikes gas prices for population by quarter as part of deal with IMF

Kiev has announced that Ukrainians will have to pay nearly 25 percent more for gas starting from November. The decision follows an agreement with the International Monetary Fund that demands increases as part of aid program.

“Starting from November 1, gas prices will increase only by 23.5 percent. Not by 60 percent. This is what we managed to achieve with incredible efforts as a result of negotiations,” Ukrainian Prime Minister Vladimir Groysman said on Friday.

The prime minister noted that the Ukrainian government had been negotiating with the International Monetary Fund (IMF) to remove the issue of raising gas prices from the agenda of cooperation with the organization.

The four-year program of IMF aid for Ukraine provides for the allocation of $17.5 billion to the country. Kiev has received four tranches in the program since 2015. The authorities of Ukraine expected to receive the fifth tranche by the end of 2017, but it has not yet been allocated.

The funding depends on several austerity measures like increasing gas prices for the public, various anti-corruption reforms, and additional requirements in the state budget.

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