The Ukrainian government has come to a preliminary agreement with the International Monetary Fund to gradually raise gas prices to market levels by 2020, the head of the country’s state gas company said on Sept. 18.
Andriy Kobolev, CEO of state gas company Naftogaz, told the European Business Association in Kyiv that the two sides have reached a compromise, news agency Interfax-Ukraine reported.
He said the issue of the price of gas for domestic use, which is highly discounted in Ukraine, had been central to the negotiations between the government and an IMF mission that arrived in Kyiv on Sept. 6 for talks on the disbursal of further loans.
Previously, Ukrainian media reported that Ukraine would initially raise gas prices by 23.5 to 25 percent. However, Kobolev cast doubt on the veracity of these figures. He also noted that the two parties are currently discussing the speed of the price increases.
Raising gas prices is one of the key conditions for Ukraine to receive another tranche of IMF financing. However, Kyiv has repeatedly postponed price hikes. The latest delay, in August, came just over a week before the IMF mission’s visit.
Commenting on the compromise, Deputy Prime Minister Stepan Kubiv said Ukraine would fulfill its obligations to the IMF, the UNN news agency reported.
Ukraine “always fulfills these and other agreements that defend the interests of the state,” he said.
