REUTERS
Talks with the IMF remain constructive, the official said.
Prime Minister of Ukraine Volodymyr Groysman expects to reach an agreement with the International Monetary Fund (IMF) on raising gas prices for households, taking into account the real economic situation in Ukraine and its citizens' income.
"We are now in talks with the IMF, which are proceeding constructively. I see [IMF] understanding the real economic situation. They assess the real incomes of people. We expect that there will be an appropriate understanding [of the situation] and we'll be able to get out of this with minimal losses," he told a Ukrainian TV channel on October 2.
The prime minister confirmed that today gas prices for households are 60% lower than those on the market. However, he stressed that the government would not allow such a sharp price hike.
"I won't allow such 60% rise. On the other hand, I realize any increase [in prices] that may occur is a necessary measure, and we need to further protect our people. Therefore, we are now working to improve the system of subsidies," the official added.
Read alsoUkraine must pay off US$15 bln in foreign debt in 2019 – PM Groysman
As UNIAN reported earlier, in order to continue cooperation with the IMF, Ukraine should review the state budget for its compliance with the deficit targets in the framework of the cooperation program and ensure a transition to a market mechanism for setting gas prices for households.
In March 2015, the IMF approved a four-year EFF loan program for Ukraine under which $17.5 billion will be disbursed. Under the program, Ukraine has received only four disbursements from the Fund to the tune of $8.7 billion due to the slow implementation of the agreed reforms. The program is expiring in March 2019. However, the National Bank of Ukraine and the Finance Ministry expect to receive $1.9 billion from the IMF in 2018.
Gas prices for households are set at UAH 6,958, or US$246, per 1,000 cubic meters. It is UAH 4,942, or $1175, excluding VAT and transmission costs.
At the same time, National Joint-Stock Company Naftogaz of Ukraine raised the minimum prices of natural gas for industrial consumers by 9.7% as of October 1, 2018, to UAH 13,439 ($475) per 1,000 cubic meters.