Despite obligations to IMF, Ukraine decides not to increase gas tariffs
The Ukrainian government has postponed the publication of import parity gas prices from October 1, 2017 until March 31, 2018, as reported by Ukrainian News, citing the Cabinet's resolution dated September 26th.
"[It is decided] to agree with the Ministry of Energy and Coal Industry’s proposal on the postponing of the relevant information [publication of the price]," the document says.
It was decided to postpone the price promulgation until the mechanism by which the process is determined is agreed upon by the International Monetary Fund and the European Energy Community.
Effective October 1st, in Ukraine, the gas price for the population and heat-generating companies has been set at the level of import parity since April 1, 2017 in the amount of 4,942 hryvnias ($185 USD) per 1,000 cubic meter.
According to the methodology for determining the gas price by import parity, established by Resolution No. 187 of March 22, 2017, as of October 1, 2017, the price of gas for the population and heat-generating companies should have increased by 17.6%. This mechanism was agreed to by the IMF at the beginning of the year. However, Prime Minister Volodymyr Groysman has been totally against raising gas prices.
Earlier, the IMF First Deputy Managing Director, David Lipton, said that the IMF has asked Ukraine to adhere to its commitments regarding gas prices for the population. He said that it was crucial to depoliticize this process by applying a pre-set formula.