IMF Concerned By Ukraine’s Intention To Regulate Household Gas Prices

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The International Monetary Fund is concerned by Ukraine’s intention to regulate gas prices for households.

Finance Minister Serhii Marchenko announced this in an interview on Radio NV, the Ukrainian News Agency reports.

“Our partners know that such a decision is possible. They have a corresponding reaction. They are concerned that we are somewhat revising our earlier commitments. The issue now is that this can be part of a mechanism or a temporary solution. The acting minister of energy is actively working on this. By the way, he held a telephone conversation with the IMF yesterday. I think that the relevant consultations will also be held today. That is, this is a permanent process. It is happening all the time. There are currently no grounds to categorically say that we have already done something very bad,” the minister said.

According to him, the government is trying to explain to representatives of the IMF that failure to make a decision to cut prices can have very negative consequences for the country’s economy as a whole.

The government is explaining to IMF representatives that Ukraine is currently solving the problem in a fire-fighting mode, he said.

According to him, Ukraine undertook clear obligations regarding market-based tariff setting in the natural gas market in the Memorandum of Economic and Financial Policies it submitted to the International Monetary Fund.

Marchenko stressed that a decision to cut prices has not yet been made.

This can be done shortly, he said.

As Ukrainian News Agency earlier reported, President Volodymyr Zelenskyy has said that fixing the gas price for households at UAH 6.99 per cubic meter will reduce household gas bills by about 30%.

The Cabinet of Ministers intends to fix the gas price for households at UAH 6.99 per cubic meter from February 1 until the end of the quarantine.

© 2021 UNA

9 comments

  • I’m more concerned about the rampant corruption and oligarchy under Zelensky, than the gas prices.

    Liked by 4 people

  • “As Ukrainian News Agency earlier reported, President Volodymyr Zelenskyy has said that fixing the gas price for households at UAH 6.99 per cubic meter will reduce household gas bills by about 30%.”

    How will this reduce gas bills? In summer the price of gas was just over 2 uah a cubic meter.

    Liked by 4 people

    • Really? What a rip-off to claim a UAH5 increase is a bargain. This administration appears to be shamelessly and openly corrupt and abusive.

      Liked by 4 people

      • This happens every year. The price is increased in winter, when the public use more gas, but it is done very quietly. In summer the government reduce the price of gas, when nobody uses it, usually accompanied by great fanfare.

        Liked by 4 people

  • I heard recently that gas has indeed gone up, as it does every winter, but electricity has almost doubled. Is that right F1? It seems strange because Ukraine produces (or used to produce);lots of electricity? Also an ‘economy 7’ system, which provides cheaper electricity from 12-7.00 am has been abandoned. If that is true, it will cause great hardship.

    Liked by 4 people

    • Before the 1st of Jan, electricity was charged at 0.9 uah per KW, up to 100 KW. Over 100KW, the price was 1.68 per KW. Now the clown is charging 1.68 for all electricity.

      Liked by 3 people

      • If you add the essential utilities together : gas, leccy, water, building maintenance, what does it come to for a typical family in a small flat each month? I am guessing that when you add food, clothes, presents for the kids etc, to the outgoings, you are left with a minus figure.
        I remember Tymoshenko promised cheap gas at the last election and I thought that would be a winner, but it wasn’t.
        I spend quite a bit of time in Georgia and since putinoid skanks took over the country, utility prices went even higher and Georgia salaries are even worse than Ukraine.
        The legacy of Russia: poverty, death, misery and endless threats. Yet Ukrainian and Georgian people somehow manage to keep their spirits up. Although not the families of those murdered by the putinazis of course.

        Liked by 3 people

        • There will never be cheap utilities in Ukraine, until these middlemen like Firtash are cut out of the loop. This is where the real corruption is, and where these oligarchs are ripping Ukraine off, left, right and centre.

          Liked by 3 people

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