Photo from UNIAN
The Prime Minister intends to hold consultations with Rada faction leaders on possible scenarios for settling the gas price issue.
The increase in gas prices for the households may become a forced step to prevent an economic disaster and poverty which would be caused by issues with servicing Ukraine's foreign debts, Prime Minister Volodymyr Groysman told the Verkhovna Rada on Friday, July 13.
"I'm telling you responsibly: I don't wish to raise gas prices. I don't want to do this. This can only be a forced step in order to prevent the economic disaster and poverty of Ukrainian citizens. And so, now we clearly stand on these positions ... I will ask for consultations with the faction leaders on this issue, and I will show two scenarios, three scenarios on which we can go," he said.
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According to the prime minister, the lack of support from international partners who advocate a market mechanism for pricing and establishing a single gas price can lead to serious problems with the payment of external debt, and ultimately, to poverty in the country.
"On the one hand, as for my activities as prime minister and those of the previous government of Arseniy Yatsenyuk, we all did everything to stabilize the situation and launch growth. Already, inflation is slowing down, prices remain more stable. Next year, the situation will be even better. But if we fail to service external debts, we will have huge, huge problems not to be felt by oligarchs, but, as always, ordinary Ukrainian citizens. But I wouldn’t admit such a scenario," Groysman said.
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As reported earlier, at a Thursday press conference in UNIAN, key business associations – the American Chamber of Commerce, European Business Association, Union of Ukrainian Entrepreneurs, and Independent Association of Banks of Ukraine - called upon the International Monetary Fund to unblock until July 20 the allocation of a $1.9 billion credit tranche, as further delays in the process could lead to a default, large-scale devaluation of the hryvnia, and massive unemployment.
In particular, the associations called on Parliament to amend the law on the anti-corruption court, and the government to fulfill its earlier obligations to establish market prices for gas, and to reduce the budget deficit.
The associations stated that economic instability and the course of devaluation could become a threat not only to the well-being of citizens, but also to national security in the context of Russia's military aggression.
At the same time, National Bank Governor Yakiv Smolii earlier stated that Ukraine is able to survive the peak of payments on foreign debt including without cooperation with the IMF.