IMF mission to resume work in Ukraine after ceiling gas tariffs expire – MP Korniyenko

Chairman of the ruling Servant of the People Party, Member of Parliament Oleksandr Korniyenko says a mission of the International Monetary Fund (IMF) is to return to Kyiv and resume its work on the review of the Stand-By Arrangement (SBA) for Ukraine in April 2021, after the government-imposed ceiling price of natural gas for households expires.

Read alsoUkraine could receive IMF tranche before summer start - advisor to Presidential Office chief"The IMF mission had completed its interim work. They pointed out to the nuances in our joint work that are of concern to them as regards the implementation of agreements. They said they would return soon, in particular, after our story with gas [tariffs] ends. It goes until April 1," the media outlet Suspilne quoted Korniyenko as saying on March 4.

The official stressed that the manual regulation of gas prices is not the only comment from the IMF. "They are also concerned about judicial reform and anti-corruption legislation," he added.

IMF in Ukraine

On June 9, 2020, the IMF's Executive Board adopted an 18-month Stand-By Arrangement for Ukraine with funding equivalent to SDR 3.6 billion (about US$5 billion) aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.

On June 12, Ukraine received the first tranche of the IMF loan under the SBA worth US$2.1 billion.

In late November, the Finance Ministry reported on the successful completion of talks with the IMF on benchmarks of the draft budget for 2021, which was one of the major prerequisites for starting the SBA review.

On January 11, 2021, an IMF mission resumed work in Kyiv, they worked until February 12 but departed without any decision on the SBA review.

Gas tariffs

• 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.
• Heating and electricity tariffs increased 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.