Ukraine set to lift regulations off prices for all energy resources

The Cabinet has set the relevant task to be fulfilled by 2030.

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In the National Economic Strategy until 2030, the government sets a task to introduce unregulated pricing for all energy resources.

That's according to the text of the strategy posted on the government portal.

The strategy notes that the free formation of prices for energy for all categories of consumers with the effective mechanisms laid down to support vulnerable strata is among the tasks set out by the Cabinet of Ministers.

Read alsoUkraine approves economic strategy until 2030In addition, the government intends to create competitive markets for gas, electricity, heat, coal, oil, and petroleum products.

Background

Heating and electricity tariffs rose in Ukraine on January 1, 2021. Also, the price of gas as a commodity reached almost UAH 11 (US$0.40) per cubic meter in the first months of 2021. In addition, tariffs for natural gas transportation to households' homes increased by 1.6 times.

On January 18, 2021, the government fixed a price of natural gas at UAH 6.99 (US$0.25) per cubic meter for households in Ukraine as of February until the end of the heating season.

A mission of the International Monetary Fund is to return to Kyiv and resume work on the review of the Stand-By Arrangement for Ukraine in April 2021, after the government-imposed ceiling price of natural gas for households expires, according to MP Oleksandr Kornienko, chairman of the ruling Servant of the People faction.

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