REUTERS
Suspension of the energy sector reform and breakdown in the schedule of gas tariff changes will not allow Ukraine to carry out a set of structural reforms, including those that are envisaged by the program of cooperation with the International Monetary Fund (IMF), the country's key creditor, Naftogaz of Ukraine CEO Andriy Kobolev said during the 12th Annual Ukraine Investor Conference.
"We need to keep the pace of changes. If we are expected to raise tariffs in March and we do not do it, we will fail to fulfill key indicators [of the reform program]. And this is important not only for Naftogaz, but also for the whole country," Kobolev said.
He noted that the reforms implemented in 2014-2015 have already contributed to a significant reduction in Naftogaz deficit. However, further planned increase in gas tariffs to economically feasible level is needed, as well as the adoption of the revised legislation on the functioning of the gas market.
Earlier Chief of the National Commission for State Energy and Public Utilities Regulation, Dmytro Vovk, stated the minimum gas tariff for households and district heating utility companies would increase by 53% from April 1, from UAH 3,600 UAH with VAT included to UAH 5,500 with VAT included per 1,000 cubic meters.
According to Vovk, with the increase in the minimum gas price for district heating utility companies to UAH 5,500 per 1,000 cubic meters, household gas tariffs will increase by an average of 80% per month.