IMF: Gas Prices in Ukraine Should Be Increased

Translated by Ollie Richardson & Angelina Siard

16:40:12
16/09/2017

timer-odessa.net


Gas prices in Ukraine are too low in comparison with its neighbors. Besides, Ukrainians are wealthy enough to pay more. This 
was stated by the deputy head of the IMF David Lipton.

“Gas prices in Ukraine are too low in comparison with its neighbors. If Ukraine wants energy independence, it should create conditions for investments in gas infrastructure, which is possible only when gas prices reflect events in the market,” said Lipton.

He emphasized that an increase in gas prices won’t have much of a negative impact on the standard of living of Ukrainians, at the beginning of the year the minimum wage in the country grew twofold. As for needy citizens, they are protected by the program of subsidies.

“Gas prices must be determined by market processes,” stressed Lipton.

As a reminder, from October 1st in Ukraine new gas prices will come into force for the population, which will be determined depending on the prices of natural gas on the global market. Naftogaz of Ukraine considers that this price must be 15% higher than the current one. The Cabinet of Ministers wants to avoid increasing tariffs.

 

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