IMF Memorandum: Ukraine pledged to raise gas prices by 15% since May, 2019

Open source

Ukraine has committed itself to raise the price of gas for the households by 15% from May 1, 2019, and to equate prices to market prices since 2020.

Such a condition is part of the published Memorandum on economic and financial policies on the stand-by program between Ukraine and the International Monetary Fund, UNIAN informs.

“The government decided to increase the wholesale gas price for domestic use by 26% as a first step towards liberalizing gas tariffs, effective from November 1, 2018, and another 15% from May 1, 2019,” states in a programme.

IMF also assumes that the next stage to strengthening the gas sector will be full compliance with market prices from January 1, 2020.

The International Monetary Fund officially announced the Memorandum on Economic and Financial Policies for a new 14-month stand-by program for Ukraine in the amount of USD 3.9 billion, approved by the IMF Council on December 18.

Note that on October 19, the Cabinet of Ministers raised the gas price for households by 23.5% from November 1 to about UAH 8,550 per thousand cubic meters.

As The Journalist reported, the forecast for Ukraine’s GDP growth is 3.5% in 2019.