Gas tariffs remain key issue in Ukraine's talks with IMF, says Alier
The issue of raising gas tariffs for domestic consumers is among the key elements in the talks between Ukraine and the International Monetary Fund (IMF), IMF Resident Representative in Ukraine Max Alier has said at the 9th Investment Conference organized by Dragon Capital in Kyiv on Wednesday.
"I have read news reports (containing Ukrainian President Viktor Yanukovych's statements that there was no intention to raise gas tariffs) and I'm not sure that the news was conveyed sufficiently accurately. Besides, I have not had an opportunity to discuss with the government exactly what they meant, so I would rather refrain from commenting. The only thing I can say is that the gas prices are still among the key elements in the recommendations of the fund," he said.
According to Alier, regulation of gas and heating tariffs should be accompanied by increased social programs, whose targeting in turn should be reviewed in order to distribute resources more efficiently.
As reported, Ukrainian President Viktor Yanukovych said during the Dialogue with the Country live television program on February 22 that Ukraine was not planning to increase the price of gas for the population and industry.
"You can be sure that, particularly thanks to your efforts, we will not increase the price of gas for the population and industry," Yanukovych said.
First Deputy Prime Minister Sergei Arbuzov said in mid-January that Ukraine planned to negotiate a new financing program with the IMF totaling 10 billion SDR (special drawing rights).
The latest stand-by program ended in December 2012. Financing under the program began in July 2010, but Ukraine was only able to secure disbursal of two tranches totaling 2.25 billion SDR. The program was frozen in the spring of 2011 during the second review: Ukraine spent 18 months in an unsuccessful attempt to have the IMF drop the demand for a gas price hike pending the completion of gas talks with Russia.
An IMF mission was in Kyiv on January 29-February 12 to discuss possible preparations for a new stand-by program. The mission will return to Ukraine in March to continue the talks.
