Ukraine to propose new gas price formula to IMF – Reuters

Reuters reports this, referring to a source close to the matter.

As noted, if Finance Minister Oleksandr Danylyuk and the IMF cannot reach a common understanding in talks next week in Washington, the source told Reuters, Ukraine has two options, the first of which is for Kyiv to comply with the IMF’s demands.

“Option two is to say we can live without the IMF, that Ukrainians are worth more than the IMF, not to care about this cooperation and take a political decision, approve the formula and that’s it,” said the source, who spoke on condition of anonymity.

He said the new formula would avoid an around 15 percent increase in household gas prices. Under the government’s new proposal, gas prices would rise 4.8 percent compared with an increase of 17.6 percent required under the existing system, according to the source and a document seen by Reuters.

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