The Cabinet of Ministers of Ukraine denies the possibility of utility tariff increases at the request of the International Monetary Fund (IMF), the country`s key creditor, according to a posting on the government`s Twitter page.
”The arrangements with the IMF stipulate that tariffs must be at a level ensuring the full coverage of costs. No increases in prices for utilities are envisaged.”
As UNIAN reported earlier, the policy of a gradual increase in tariffs was initiated by Ukraine`s ex-Prime Minister Arseniy Yatsenyuk. It aimed at streamlining operations of the country`s utility companies, as well as bringing utility bills in line with energy costs.
It was initially planned that higher tariffs would be phased in within two years – from 2015 until March 2017. However, in May 2016 the new government chaired by Volodymyr Groysman decided that gas tariffs for households and its cost should be aligned. In the light of this decision, heating and power tariffs were also raised.
At the same time, the government has introduced subsidies for the most vulnerable groups of the population. It has estimated that up to nine million Ukrainian households out of the 15 million registered in the country may apply for housing and utilities subsidies in the 2016-2017 heating season.
Earlier, IMF experts said gas and utilities tariffs in Ukraine would be fully liberalized and brought in line with market rates no later than April 1, 2017.
