IMF: Ukraine should let gas prices be determined by market

IMF: Ukraine should let gas prices be determined by market

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Ukrinform
Ukraine should let gas prices be determined by the market, in line with the reforms that were implemented in 2016.

IMF representative to Ukraine, Goesta Ljungman, said this in a commentary to Reuters.

 "We believe that it is important to let gas prices - including tariffs for households - be determined by the market, in line with the reforms that were implemented in 2016," he noted.

According to Ljungman, low prices for households amounted to subsidies that were regressive and helped the largest users the most.

The representative of the Fund did not comment on how the government’s decision affected the outlook for the next loan tranche, but the Fund has previously made clear that adjusting gas prices is a key requirement for further funding.

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