MainMain

Ukraine has not convinced IMF on gas price

"We are working on this," Finance Minister Oleksandr Danilyuk says.

Ukraine is in talks with the International Monetary Fund on the methodology for determining the price of gas for households and heat generating companies.

"We are working on this," Finance Minister Oleksandr Danilyuk told reporters answering the question whether Ukraine has succeeded in agreeing with the IMF on a mechanism for determining the price of gas.

According to the method of determining the price of gas based on import parity set by Cabinet resolution as of March 22, the price of gas for the population and heat generating companies was to increase by 17.6% after 1 October this year, after the same growth since June 2016 to May 2017.

The IMF early this year allowed Ukraine not to raise the gas price from October 1, only if the price of imported gas does not go up by more than 10% in the specified period.

Ukrainian government has refused to raise gas prices for households and sent the Fund a proposal to change the formula.

On Friday, the IMF Permanent Representative in Ukraine Jost Lyungman said that gas prices should be regulated on the basis of the №187 Cabinet resolution.